UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549-1004
FORM U-9C-3
QUARTERLY REPORT PURSUANT TO RULE 58
For the quarterly period ended December 31, 2001
Northeast Utilities
-------------------
(Name of registered holding company)
107 Selden Street, Berlin, CT 06037
-----------------------------------
(Address of Principal Executive Officers)
Name and telephone number of officer to whom inquiries concerning this report
should be directed:
John P. Stack, Vice President-Accounting and Controller
Telephone Number: 860-665-2333
GENERAL INSTRUCTIONS
A. Use of Form
1. A reporting company, as defined herein, shall file a report on this
form within 60 days after the end of each of the first three
quarters, and within 90 days after the end of the fourth quarter,
of the fiscal year of the registered holding company. The period
beginning on the date of effectiveness of rule 58 and ending at the
end of the quarter following the quarter in which the rule becomes
effective shall constitute the initial period for which any
report shall be filed, if applicable.
2. The requirement to provide specific information by means of this
form supersedes any requirement by order of the Commission to provide
identical information by means of periodic certificates under rule
24; but does not so supersede and replace any requirement by order
to provide information by means of an annual report on Form U-13-60.
3. Information with respect to reporting companies that is required by
Form U-13-60 shall be provided exclusively on that form.
4. Notwithstanding the specific requirements of this form, this
Commission may informally request such further information
as, in its opinion, may be necessary or appropriate.
B. Statements of Monetary Amounts and Deficits
1. Amounts included in this form and in related financial statements
may be expressed in whole dollars, thousands of dollars or hundred
thousands of dollars.
2. Deficits and other similar entries shall be indicated by either
brackets or parentheses. An explanation should be provided by
footnote.
C. Formal Requirements
This form, including exhibits, shall be filed with Commission
electronically pursuant to Regulation S-T (17 CFR 232.10 et seq.).
A conformed copy of each such report shall be filed with each state
commission having jurisdiction over the retail rates of a public utility
company that is an associate company of a reporting company. Each report
shall provide the name and telephone number of the person to whom
inquiries concerning this report should be directed.
D. Definitions
As used in this form, the word "reporting company" means an energy-related
company or gas-related company, as defined in rule 58(b). All other words
and terms have the same meaning as in the Public Utility Holding Company
Act of 1935, as amended, and the rules and regulations thereunder.
ITEM 1 - ORGANIZATIONAL CHART
-------------------------------------------------------------------------------
Instructions
-------------------------------------------------------------------------------
1. Complete Item 1 only for the first three calendar quarters of the
fiscal year of the registered holding company.
2. Under the caption "Name of Reporting Company," list each energy-
related and gas-related company and each system company that
directly or indirectly holds securities thereof. Add the
designation "(new)" for each reporting company of which
securities were acquired during the period, and the designation
"(*)" for each inactive company.
3. Under the caption "Percentage of Voting Securities Held," state
the aggregate percentage of the outstanding voting securities of
the reporting company held directly or indirectly by the
registered holding company at the end of the quarter.
4. Provide a narrative description of each reporting company's
activities during the reporting period.
-------------------------------------------------------------------------------
4th quarter not required.
ITEM 2 - ISSUANCES AND RENEWALS OF SECURITIES AND CAPITAL CONTRIBUTIONS
-------------------------------------------------------------------------------
Instruction
-----------
With respect to a transaction with an associate company, report
only the type and principal amount of securities involved.
-------------------------------------------------------------------------------
Person
Company Type of Principal to Whom Collateral Consideration Company Amount of
Issuing Security Amount of Issue or Cost of Security Given With Received for Contributing Capital
Security Issued Security Renewal Capital Was Issued Security Each Security Capital Contribution
-------------- -------- ------------ -------- ------- ----------- ---------- ------------- ------------ ------------
NU
Select Enterprises,
Energy, Inc. N/A N/A N/A N/A N/A N/A N/A Inc. $10,000,000
Northeast
Generation NU
Services Enterprises,
Company N/A N/A N/A N/A N/A N/A N/A Inc. $ 925,000
Select Energy
Contracting,
Inc. No transactions this quarter.
Reeds Ferry
Supply Co.,
Inc. No transactions this quarter.
HEC/Tobyhanna
Energy
Project, Inc. No transactions this quarter.
Yankee Energy
Services
Company No transactions this quarter.
R. M.
Services, Inc. No transactions this quarter.
Acumentrics
Corporation No transactions this quarter.
ERI/HEC
EFA-Med, LLC No transactions this quarter.
E.S. Boulos
Company No transactions this quarter.
NGS Mechanical
Company No transactions this quarter.
HEC/CJTS
Energy Select Energy
Center LLC N/A N/A N/A N/A N/A N/A N/A Services, Inc. $ 10,000
Northeast Select Energy
Utilities Advance $33,502,000 N/A N/A New York, Inc. N/A N/A N/A
Select Energy Select Energy,
New York, Inc. N/A N/A N/A N/A N/A N/A N/A Inc. $ 5,000,000
ITEM 3 - ASSOCIATE TRANSACTIONS
-------------------------------------------------------------------------------
Instructions
------------
1. This item is used to report the performance during the quarter of contracts
among reporting companies and their associate companies, including other
reporting companies, for service, sales and construction. A copy of any
such contract not filed previously should be provided as an exhibit pursuant
to Item 6.B.
2. Parts I and II concern transactions performed by reporting companies on
behalf of associate companies, and transactions performed by associate
companies on behalf of reporting companies, respectively.
-------------------------------------------------------------------------------
Part I - Transactions performed by reporting companies on behalf
of associate companies.
Total Amount
Billed*
Reporting Associate
Company Company Types of Three Months
Rendering Receiving Services Ended
Services Services Rendered December 31, 2001
----------------------- ------------------- -------------- ------------------
(Thousands
of Dollars)
Northeast Select
Generation Energy, Inc. Electrical and
Services Mechanical services $ 12
Company ==================
Northeast The
Generation Connecticut
Services Light & Power Electrical and
Company Company Mechanical services $ 2
==================
Northeast Western
Generation Massachusetts Electrical and
Services Electric Company Mechanical services $ 13
Company ==================
Northeast Public Service
Generation Company of Electrical and
Services New Hampshire Mechanical services $ 253
Company ==================
Northeast Holyoke Water
Generation Power Company Electrical and
Services Mechanical services $ 2,930
Company ==================
Northeast Northeast
Generation Generation Electrical and
Services Company Mechanical services $ 6,087
Company ==================
Wholesale
Reeds Ferry Select Energy Purchasing
Supply Co., Inc. Contracting, Inc. Services $ 295
==================
Northeast North Atlantic
Generation Energy Service Electrical and
Services Corporation Mechanical services $ 24
Company ==================
Northeast
Generation Yankee Energy Electrical and
Services Services Company Mechanical services $ 69
Company ==================
Northeast Northeast
Generation Utilities
Services Service Electrical and
Company Company Mechanical services $ 38
==================
Part II - Transactions performed by associate companies on behalf
of reporting companies.
Total Amount
Billed*
Associate Reporting
Company Company Types of Three Months
Rendering Receiving Services Ended
Services Services Rendered December 31, 2001
----------------------- ------------------- -------------- ------------------
(Thousands
of Dollars)
Public Service Company Select
of New Hampshire Energy, Inc. Miscellaneous $ 12
==================
* 'Total Amount Billed' is direct costs only.
ITEM 4 - SUMMARY OF AGGREGATE INVESTMENT
Investments in energy-related companies:
---------------------------------------
(Thousands of Dollars)
Total consolidated capitalization as of12/31/01 $6,885,709 line 1
Total capitalization multiplied by 15%
(line 1 multiplied by .15) 1,032,856 line 2
Greater of $50 million or line 2 $1,032,856 line 3
Total current aggregate investment:
(categorized by major line of
energy-related business):
Select Energy, Inc. $616,950
Northeast Generation Services Company 25,336
Select Energy Contracting, Inc. 36,656
Select Energy New York, Inc. 36,699
Reeds Ferry Supply Co., Inc. 7
HEC/Tobyhanna Energy Project, Inc. -
Yankee Energy Services Company 10,582
E.S. Boulos Company 7,539
R.M. Services, Inc. 13,799
NGS Mechanical Company 10
Acumentrics Corporation 10,000
ERI/HEC EFA-Med, LLC 6
HEC/CJTS Energy Center LLC 10
-----------
Total current aggregate investment 757,594 line 4
-----------
Difference between the greater of $50 million or 15% of
capitalization and the total aggregate investment of the
registered holding company system $275,262 line 5
===========
ITEM 5 - OTHER INVESTMENTS
-------------------------------------------------------------------------------
Instruction
-----------
This item concerns investments in energy-related and gas-related companies
that are excluded from the calculation of aggregate investment under rule 58.
-------------------------------------------------------------------------------
Major Line Other Other
of Energy- Investment Investment
Related in Last in This Reason for Difference
Business U-9C-3 Report U-9C-3 Report in Other Investment
------------- ------------- ------------- ------------------------
NONE
ITEM 6 - FINANCIAL STATEMENTS AND EXHIBITS
-------------------------------------------------------------------------------
Instructions
-------------------------------------------------------------------------------
A. Financial Statements
1. Financial statements are required for reporting companies in
which the registered holding company system has at least 50%
equity or other ownership interest. For all other rule 58
companies, the registered holding company shall make
available to the Commission such financial statements as are
available to it.
2. For each reporting company, provide a balance sheet as of
the end of the quarter and income statements for the three-
month and year-to-date periods ending as of the end of the
quarter, together with any notes thereto. Financial
statements shall be for the first three quarters of the
fiscal year of the registered holding company.
3. If a reporting company and each of its subsidiaries engage
exclusively in single category of energy-related or gas-
related activity, consolidated financial statements may be
filed.
4. Separate financial statements need not be filed for inactive
companies or for companies engaged solely in the ownership
of interests in energy-related or gas-related companies.
B. Exhibits
1. Copies of contracts required to be provided by Item 3 shall
be filed as exhibits.
2. A certificate stating that a copy of the report for the
previous quarter has been filed with interested state
commissions shall be filed as an exhibit. The certificate
shall provide the names and addresses of the state
commissions.
A. Financial Statements
Select Energy, Inc. (Unconsolidated):
Balance Sheet - As of December 31, 2001
Income Statement - Three months and twelve months ended December 31, 2001
Select Energy New York, Inc.:
Balance Sheet - As of December 31, 2001
Income Statement - Three months and twelve months ended December 31, 2001
Northeast Generation Services Company:
Balance Sheet - As of December 31, 2001
Income Statement - Three months and twelve months ended December 31, 2001
Select Energy Contracting, Inc.:
Balance Sheet - As of December 31, 2001
Income Statement - Three months and twelve months ended December 31, 2001
Reeds Ferry Supply Co., Inc.:
Balance Sheet - As of December 31, 2001
Income Statement - Three months and twelve months ended December 31, 2001
HEC/Tobyhanna Energy Project, Inc.:
Balance Sheet - As of December 31, 2001
Income Statement - Three months and twelve months ended December 31, 2001
Yankee Energy Services Company:
Balance Sheet - As of December 31, 2001
Income Statement - Three months and twelve months ended December 31, 2001
ERI/HEC EFA-Med, LLC:
Not available as of December 31, 2001
E. S. Boulos Company:
Balance Sheet - As of December 31, 2001
Income Statement - Three months and twelve months ended December 31, 2001
NGS Mechanical Company:
Balance Sheet - As of December 31, 2001
Income Statement - Three months and twelve months ended December 31, 2001
HEC/CJTS Energy Center LLC:
Balance Sheet - As of December 31, 2001
Income Statement - Three months and twelve months ended December 31, 2001
Northeast Utilities (Parent):
4th quarter not required
B. Exhibits
Exhibit No. Description
----------- -----------
6.B.1.1a Copy of contract required by Item 3 - filed under
confidential treatment pursuant to Rule 104(b).
6.B.1.1b Copy of contract required by Item 3 - filed under
confidential treatment pursuant to Rule 104(b).
6.B.1.1c Copy of contract required by Item 3 - filed under
confidential treatment pursuant to Rule 104(b).
6.B.1.1d Copy of contract required by Item 3 - filed under
confidential treatment pursuant to Rule 104(b).
6.B.1.1e Copy of contract required by Item 3 - filed under
confidential treatment pursuant to Rule 104(b).
6.B.1.1f Copy of contract required by Item 3 - filed under
confidential treatment pursuant to Rule 104(b).
6.B.1.1g Copy of contract required by Item 3 - filed under
confidential treatment pursuant to Rule 104(b).
6.B.1.1h Copy of contract required by Item 3 - filed under
confidential treatment pursuant to Rule 104(b).
6.B.1.1i Copy of contract required by Item 3 - filed under
confidential treatment pursuant to Rule 104(b).
6.B.1.1j Copy of contract required by Item 3 - filed under
confidential treatment pursuant to Rule 104(b).
6.B.1.2a Copy of contract required by Item 3 - filed under
confidential treatment pursuant to Rule 104(b).
6.B.1.2b Copy of contract required by Item 3 - filed under
confidential treatment pursuant to Rule 104(b).
6.B.1.3 Copy of contract required by Item 3 - filed under
confidential treatment pursuant to Rule 104(b).
6.B.1.4 Copy of contract required by Item 3 - filed under
confidential treatment pursuant to Rule 104(b).
6.B.2.1 The company certifies that a conformed copy of Form
U-9C-3 for the previous quarter was filed with the
following state commissions:
Ms. Louise E. Rickard
Acting Executive Secretary
Department of Public Utility Control
10 Franklin Square
New Britain, CT 06051
Ms. Mary L. Cottrell, Secretary
Massachusetts Department of Telecommunications and Energy
100 Cambridge Street
Boston, MA 02202
Mr. Thomas B. Getz
Executive Director and Secretary
State of New Hampshire
Public Utilities Commission
8 Old Suncook Road, Building One
Concord, NH 03301-7319
SELECT ENERGY, INC.
BALANCE SHEET
(Unaudited)
December 31,
2001
--------------
(Thousands
of Dollars)
ASSETS
------
Current Assets:
Accounts receivable, including unbilled
revenues, net $ 277,132
Accounts receivable from affiliated companies 107,567
Taxes receivable 2,282
Special deposits 13,036
Unrealized gains on mark-to-market transactions 60,836
Prepaid wholesale power purchases 8,286
Prepayments and other 2,847
-------------
Total current assets 471,986
-------------
Deferred Charges:
Intangibles, net 20,151
Accumulated deferred income taxes 32,585
Prepaid pensions 2,716
Other 23,697
-------------
Total deferred charges 79,149
-------------
Property Plant and Equipment:
Other 12,051
-------------
12,051
Less: Accumulated provision for depreciation 3,736
-------------
8,315
Capital additions in progress 289
-------------
Total long-lived assets 8,604
-------------
Total Assets $ 559,739
=============
Note: In the opinion of the Company, all adjustments necessary for a fair
presentation of financial position for the period shown have been made.
See accompanying notes to financial statements.
SELECT ENERGY, INC.
BALANCE SHEET
(Unaudited)
December 31,
2001
--------------
(Thousands
of Dollars)
LIABILITIES AND STOCKHOLDER'S EQUITY
------------------------------------
Current Liabilities:
Notes payable to affiliated companies $ 162,000
Accounts payable 273,166
Accounts payable to affiliated companies 15,018
Other 87,488
-------------
Total current liabilities 537,672
-------------
Stockholder's Equity:
Common stock, $1 par value - 20,000 shares
authorized and 100 shares outstanding -
Capital surplus, paid in 199,551
Other comprehensive loss (33,459)
Retained deficit (144,025)
-------------
Total stockholder's equity 22,067
-------------
Total Liabilities and Stockholder's Equity $ 559,739
=============
Note: In the opinion of the Company, all adjustments necessary for a fair
presentation of financial position for the period shown have been made.
See accompanying notes to financial statements.
SELECT ENERGY, INC.
INCOME STATEMENT
(Unaudited)
Three Months Twelve Months
Ended Ended
December 31, December 31,
2001 2001
-------------- ---------------
(Thousands (Thousands
of Dollars) of Dollars)
Operating Revenues $ 783,921 $ 2,749,628
------------- -------------
Operating Expenses:
Purchased power, net interchange
power and capacity 791,243 2,774,370
Depreciation 1,234 4,787
Other 5,798 40,027
Taxes other than income taxes (161) 4,346
------------- -------------
Total operating expenses 798,114 2,823,530
------------- -------------
Operating Loss (14,193) (73,902)
------------- -------------
Other Income 2,745 3,011
------------- -------------
Interest and financing costs 1,291 8,578
------------- -------------
Loss before income taxes (12,739) (79,469)
------------- -------------
Income Tax Benefit:
Federal and state income taxes, net 5,867 32,160
------------- -------------
Loss before cumulative
effect of accounting change (6,872) (47,309)
Cumulative effect of accounting change,
net of tax benefit of $14,611 - (21,985)
------------- -------------
Net Loss $ (6,872) $ (69,294)
============= =============
Note: In the opinion of the Company, all adjustments necessary for a fair
presentation of financial position for the Period shown have been made.
See accompanying notes to financial statements.
NORTHEAST GENERATION SERVICES COMPANY
BALANCE SHEET
(Unaudited)
December 31,
2001
--------------
(Thousands
of Dollars)
ASSETS
------
Current Assets:
Cash $ 184
Accounts receivable 11,766
Accounts receivable from affiliated companies 1,274
Fuel, materials and supplies, at average cost 455
Prepayments and other 1,572
-------------
Total current assets 15,251
-------------
Other Investments:
Investment in subsidiary company 13,902
-------------
Total other investments 13,902
-------------
Deferred Charges:
Other 1,130
-------------
Total deferred charges 1,130
-------------
Long-Lived Assets:
Other 1,514
-------------
1,514
Less: Accumulated provision for depreciation 711
-------------
803
Capital additions in progress 1,116
-------------
Total long-lived assets 1,919
-------------
Total Assets $ 32,202
=============
Note: In the opinion of the Company, all adjustments necessary for a fair
presentation of financial position for the period shown have been made.
See accompanying notes to financial statements.
NORTHEAST GENERATION SERVICES COMPANY
BALANCE SHEET
(Unaudited)
December 31,
2001
--------------
(Thousands
of Dollars)
LIABILITIES AND STOCKHOLDER'S EQUITY
------------------------------------
Current Liabilities:
Notes payable to affiliated companies $ 12,500
Accounts payable 498
Accounts payable to affiliated companies 3,833
Accrued taxes 1,589
Other 139
-------------
Total current liabilities 18,559
-------------
Deferred Credits:
Other 37
-------------
Total deferred credits 37
-------------
Stockholder's Equity:
Common stock, $1 par value - 20,000 shares
authorized and 100 shares outstanding -
Capital surplus, paid in 10,436
Retained earnings 3,170
-------------
Total stockholder's equity 13,606
-------------
Total Liabilities and Stockholder's Equity $ 32,202
=============
Note: In the opinion of the Company, all adjustments necessary for a fair
presentation of financial position for the period shown have been made.
See accompanying notes to financial statements.
NORTHEAST GENERATION SERVICES COMPANY
INCOME STATEMENT
(Unaudited)
Three Months Twelve Months
Ended Ended
December 31, December 31,
2001 2001
------------ -------------
(Thousands (Thousands
of Dollars) of Dollars)
Operating Revenues $ 19,030 $ 67,588
------------- -------------
Operating Expenses:
Operation 13,556 50,398
Maintenance 3,990 14,760
Depreciation (23) 36
Federal and state income taxes 88 95
Taxes other than income taxes 4 256
------------- -------------
Total operating expenses 17,615 65,545
------------- -------------
Operating Income 1,415 2,043
------------- -------------
Other Income 661 3,147
------------- -------------
Interest and financing costs 123 611
------------- -------------
Net Income $ 1,953 $ 4,579
============= =============
Note: In the opinion of the Company, all adjustments necessary for a fair
presentation of financial position for the period shown have been made.
See accompanying notes to financial statements.
SELECT ENERGY CONTRACTING, INC.
BALANCE SHEET
(Unaudited)
December 31,
2001
------------
(Thousands
of Dollars)
ASSETS
------
Current Assets:
Cash $ 215
Accounts receivable 15,307
Accounts receivable from affiliated company 830
Other material and supplies 267
Prepayments and other 421
------------
Total current assets $ 17,040
------------
Deferred Charges:
Goodwill 5,943
------------
Total deferred charges 5,943
------------
Long-Lived Assets:
Other 18,575
------------
18,575
Less: Accumulated provision for depreciation 4,570
------------
Total long-lived assets 14,005
------------
Total Assets $ 36,988
============
Note: In the opinion of the Company, all adjustments necessary for a fair
presentation of financial position for the period shown have been made.
See accompanying notes to financial statements.
SELECT ENERGY CONTRACTING, INC.
BALANCE SHEET
(Unaudited)
December 31,
2001
------------
(Thousands
of Dollars)
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current Liabilities:
Notes payable to affiliated companies $ 3,790
Accounts payable 4,576
Accounts payable to affiliated companies 7,454
Accrued taxes 926
Other current liabilities 1,780
------------
Total current liabilities 18,526
------------
Long-term Liabilities:
Deferred taxes 260
Other 2,538
------------
Total long-term liabilities 2,798
------------
Stockholders' Equity:
Common stock, $1 par value - 100,000 shares
authorized and 100 shares outstanding -
Capital surplus, paid in 14,910
Retained earnings 754
------------
Total stockholders' equity 15,664
------------
Total Liabilities and Stockholders' Equity $ 36,988
============
Note: In the opinion of the Company, all adjustments necessary for a fair
presentation of financial position for the period shown have been made.
See accompanying notes to financial statements.
SELECT ENERGY CONTRACTING, INC.
INCOME STATEMENT
(Unaudited)
Three Months Twelve Months
Ended Ended
December 31, December 31,
2001 2001
------------ --------------
(Thousands (Thousands
of Dollars) of Dollars)
Operating Revenues $ 14,246 $ 56,511
------------ ------------
Operating Expenses:
Operation 13,391 51,568
Maintenance 128 437
Depreciation 316 1,647
Taxes other than income taxes 55 450
------------ ------------
Total operating expenses 13,890 54,102
------------ ------------
Operating Income 356 2,409
------------ ------------
Other (Loss)/Income (18) 22
------------ ------------
Interest and financing costs 107 680
------------ ------------
Income before income taxes 231 1,751
------------ ------------
Income Tax Expense:
Federal and state income taxes, net 178 833
------------ ------------
Net Income $ 53 $ 918
============ ============
Note: In the opinion of the Company, all adjustments necessary for a fair
presentation of financial position for the period shown have been made.
See accompanying notes to financial statements.
REEDS FERRY SUPPLY CO., INC.
BALANCE SHEET
(Unaudited)
December 31,
2001
------------
(Thousands
of Dollars)
ASSETS
------
Current Assets:
Cash $ 5
Accounts receivable 127
------------
Total current assets 132
------------
Long-Lived Assets:
Organization costs, net 247
------------
Total long-lived assets 247
------------
Total Assets $ 379
============
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current Liabilities:
Accounts payable $ 126
Accounts payable to affiliated companies 295
------------
Total current liabilities 421
------------
Stockholders' Equity:
Common stock, $0 par value - 100 shares
authorized and outstanding 4
Capital surplus, paid in 3
Retained deficit (49)
------------
Total stockholders' equity (42)
------------
Total Liabilities and Stockholders' Equity $ 379
============
Note: In the opinion of the Company, all adjustments necessary for a
fair presentation of financial position for the period shown have
been made.
See accompanying notes to financial statements.
REEDS FERRY SUPPLY CO., INC.
INCOME STATEMENT
(Unaudited)
Three Months Twelve Months
Ended Ended
December 31, December 31,
2001 2001
------------ -------------
(Thousands (Thousands
of Dollars) of Dollars)
Operating Revenues $ 258 $ 961
------------- -------------
Operating Expenses:
Other 259 962
Amortization 5 20
------------- -------------
Total operating expenses 264 982
------------- -------------
Net Loss $ (6) $ (21)
============= =============
Note: In the opinion of the Company, all adjustments necessary for a fair
presentation of financial position for the period shown have been made.
See accompanying notes to financial statements.
HEC/TOBYHANNA ENERGY PROJECT, INC.
BALANCE SHEET
(Unaudited)
December 31,
2001
------------
(Thousands
of Dollars)
ASSETS
------
Current Assets:
Cash $ 2,525
Accounts receivable from affiliated companies 1,272
------------
Total current assets 3,797
------------
Long-Lived Assets:
Other 714
------------
714
Less: Accumulated provision for depreciation 73
------------
641
Contracts receivable 26,265
------------
Total long-lived assets 26,906
------------
Total Assets $ 30,703
============
CAPITALIZATION AND LIABILITIES
------------------------------
Capitalization:
Common stock, $1 par value - 100 shares
authorized and outstanding $ -
Retained earnings 226
------------
Total common stockholder's equity 226
Long-term debt 25,979
------------
Total capitalization 26,205
------------
Current Liabilities:
Accounts payable to affiliated companies 3,403
Accrued interest 744
------------
Total current liabilities 4,147
------------
Long-term Liabilities:
Other 351
------------
Total long-term liabilities 351
------------
Total Capitalization and Liabilities $ 30,703
============
Note: In the opinion of the Company, all adjustments necessary for a fair
presentation of financial position for the period shown have been made.
See accompanying notes to financial statements.
HEC/TOBYHANNA ENERGY PROJECT, INC.
INCOME STATEMENT
(Unaudited)
Three Months Twelve Months
Ended Ended
December 31, December 31,
2001 2001
------------ -------------
(Thousands (Thousands
of Dollars) of Dollars)
Other Income $ 531 $ 2,259
------------- -------------
Interest and Financing Costs 504 2,038
------------- -------------
Income Tax Expense 151 178
------------- -------------
Net (Loss)/Income $ (124) $ 43
============= =============
Note: In the opinion of the Company, all adjustments necessary for a fair
presentation of financial position for the period shown have been made.
See accompanying notes to financial statements.
YANKEE ENERGY SERVICES COMPANY
BALANCE SHEET
(Unaudited)
December 31,
2001
------------
(Thousands
of Dollars)
ASSETS
------
Other Property and Investments:
Nonutility property, at cost $ 443
-------------
Total other property and investments 443
-------------
Current Assets:
Cash 151
Accounts receivable 4,700
Accounts receivable from affiliated companies 2,280
Taxes receivable 402
-------------
Total current assets 7,533
-------------
Deferred Charges:
Accumulated deferred income taxes 1,399
Goodwill 405
-------------
Total deferred charges 1,804
-------------
Total Assets $ 9,780
=============
Note: In the opinion of the Company, all adjustments necessary for a fair
presentation of financial position for the period shown have been made.
See accompanying notes to financial statements.
YANKEE ENERGY SERVICES COMPANY
BALANCE SHEET
(Unaudited)
December 31,
2001
------------
(Thousands
of Dollars)
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current Liabilities:
Notes payable to affiliated companies $ 3,515
Other 34
------------
Total current liablilities 3,549
------------
Stockholders' Equity:
Common stock, $0 par value - 10,000 shares
authorized and 200 shares outstanding 1
Capital surplus, paid in 7,881
Retained deficit (1,651)
-----------
Total stockholders' equity 6,231
-----------
Total Liabilities and Stockholders' Equity $ 9,780
===========
Note: In the opinion of the Company, all adjustments necessary for a fair
presentation of financial position for the period shown have been made.
See accompanying notes to financial statements.
YANKEE ENERGY SERVICES COMPANY
INCOME STATEMENT
(Unaudited)
Three Months Twelve Months
Ended Ended
December 31, December 31,
2001 2001
------------ ------------
(Thousands (Thousands
of Dollars) of Dollars)
Operating Revenues $ 51 $ 200
------------ -----------
Operating Expenses:
Other 129 1,279
Depreciation (1) 151
Amortization 5 22
------------ -----------
Total operating expenses 133 1,452
------------ -----------
Operating Loss (82) (1,252)
------------ -----------
Other Loss (229) (1)
------------ -----------
Interest and financing costs 31 399
------------ -----------
Income Tax Expense:
Income taxes, net (740) (1,188)
------------ -----------
Net Income/(Loss) $ 398 $ (464)
============ ===========
Note: In the opinion of the Company, all adjustments necessary for a fair
presentation of financial position for the period shown have been made.
See accompanying notes to financial statements.
E.S. BOULOS COMPANY
BALANCE SHEET
(Unaudited)
December 31,
2001
------------
(Thousands
of Dollars)
ASSETS
------
Current Assets:
Cash $ 286
Accounts receivable 9,713
Accounts receivable from affiliated companies 872
Materials and supplies, at average cost 103
Prepayments and other 1,683
-----------
Total current assets 12,657
-----------
Other Investments:
Other investments, at cost 26
-----------
Total other investments 26
-----------
Deferred Charges:
Other 6,964
-----------
Total deferred charges 6,964
-----------
Long-Lived Assets:
Other 547
----------
547
Less: Accumulated provision for depreciation 81
----------
Total long-lived assets 466
----------
Total Assets $ 20,113
==========
Note: In the opinion of the Company, all adjustments necessary for a fair
presentation of financial position for the period shown have been made.
See accompanying notes to financial statements.
E.S. BOULOS COMPANY
BALANCE SHEET
(Unaudited)
December 31,
2001
------------
(Thousands
of Dollars)
LIABILITIES AND STOCKHOLDER'S EQUITY
------------------------------------
Current Liabilities:
Advance from parent, non-interest bearing $ 2,948
Accounts payable 3,237
Accounts payable to affiliated companies 256
Accrued taxes 1,048
Other 540
----------
Total current liabilities 8,029
----------
Deferred Credits:
Other 1,139
----------
Total deferred credits 1,139
----------
Stockholder's Equity:
Common stock, $1 par value - 20,000 shares
authorized and 100 shares outstanding -
Capital surplus, paid in 7,539
Retained earnings 3,406
----------
Total stockholder's equity 10,945
----------
Total Liabilities and Stockholder's Equity $ 20,113
==========
Note: In the opinion of the Company, all adjustments necessary for a fair
presentation of financial position for the period shown have been made.
See accompanying notes to financial statements.
E.S. BOULOS COMPANY
INCOME STATEMENT
(Unaudited)
Three Months Twelve Months
Ended Ended
December 31, December 31,
2001 2001
------------ -------------
(Thousands (Thousands
of Dollars) of Dollars)
Operating Revenues $ 13,171 $ 45,946
------------- -------------
Operating Expenses:
Operation 11,582 41,703
Depreciation 101 356
Federal and state income taxes 894 2,249
------------- -------------
Total operating expenses 12,577 44,308
------------- -------------
Operating Income 594 1,638
------------- -------------
Other Income 296 1,768
------------- -------------
Net Income $ 890 $ 3,406
============= =============
Note: In the opinion of the Company, all adjustments necessary for a fair
presentation of financial position for the period shown have been made.
See accompanying notes to financial statements.
NGS MECHANICAL COMPANY
BALANCE SHEET
(Unaudited)
December 31,
2001
------------
(Thousands
of Dollars)
ASSETS
------
Current Assets:
Cash $ 10
------------
Total current assets 10
------------
Total Assets $ 10
============
LIABILITIES AND STOCKHOLDER'S EQUITY
------------------------------------
Current Liabilities:
Accounts payable to affiliated companies $ 1
-------------
Total current liabilities 1
-------------
Stockholder's Equity:
Common stock, $0 par value - 20,000 shares
authorized and 100 shares outstanding -
Capital surplus, paid in 10
Retained deficit (1)
-------------
Total stockholder's equity 9
-------------
Total Liabilities and Stockholder's Equity $ 10
=============
Note: In the opinion of the Company, all adjustments necessary for a fair
presentation of financial position for the period shown have been made.
See accompanying notes to financial statements.
NGS MECHANICAL COMPANY
INCOME STATEMENT
(Unaudited)
Three Months Twelve Months
Ended Ended
December 31, December 31,
2001 2001
------------ -------------
(Thousands (Thousands
of Dollars) of Dollars)
Operating Revenues $ - $ -
--------- ---------
Operating Expenses:
Other - 1
--------- ---------
Total operating expenses - 1
--------- ---------
Net Loss $ - $ (1)
========= =========
Note: In the opinion of the Company, all adjustments necessary for a fair
presentation of financial position for the period shown have been made.
See accompanying notes to financial statements.
SELECT ENERGY NEW YORK, INC.
BALANCE SHEET
(Unaudited)
December 31,
2001
------------
(Thousands
of Dollars)
ASSETS
------
Current Assets:
Cash $ 5,876
Accounts receivable 44,873
Unrealized gains on mark-to-market transactions 12,030
Fuel, materials and supplies, at average cost 2,754
Prepayments and other 2,908
-------------
Total current assets 68,441
-------------
Deferred Charges:
Accumulated deferred income taxes 96
-------------
Total deferred charges 96
-------------
Property Plant and Equipment:
Other 2,193
-------------
2,193
Less: Accumulated provision for depreciation 1,955
-------------
Total long-lived assets 238
-------------
Total Assets $ 68,775
=============
Note: In the opinion of the Company, all adjustments necessary for a fair
presentation of financial position for the period shown have been made.
See accompanying notes to financial statements.
SELECT ENERGY NEW YORK, INC.
BALANCE SHEET
(Unaudited)
December 31,
2001
------------
(Thousands
of Dollars)
LIABILITIES AND STOCKHOLDER'S EQUITY
------------------------------------
Current Liabilities:
Accounts payable $ 24,913
Accounts payable to affiliated companies 37
Accrued taxes 1,356
Other 3,075
-------------
Total current liabilities 29,381
-------------
Advance from Northeast Utilities Parent Company 33,502
-------------
Stockholder's Equity:
Common stock, $1 par value - 10,000 shares
authorized and outstanding 10
Capital surplus, paid in 3,187
Retained earnings 2,695
-------------
Total stockholder's equity 5,892
-------------
Total Liabilities and Stockholder's Equity $ 68,775
=============
Note: In the opinion of the Company, all adjustments necessary for a fair
presentation of financial position for the period shown have been made.
See accompanying notes to financial statements.
SELECT ENERGY NEW YORK, INC.
INCOME STATEMENT
(Unaudited)
Three Months Twelve Months
Ended Ended
December 31, December 31,
2001 2001
------------ -------------
(Thousands (Thousands
of Dollars) of Dollars)
Operating Revenues $ 30,651 $ 30,651
------------- -------------
Operating Expenses:
Purchased power, net interchange
power and capacity 26,592 26,592
Maintenance 1 1
Taxes other than income taxes (88) (88)
------------- -------------
Total operating expenses 26,505 26,505
------------- -------------
Operating Income 4,146 4,146
------------- -------------
Other Income 11 11
------------- -------------
Interest and financing costs 11 11
------------- -------------
Income before income taxes 4,146 4,146
------------- -------------
Income Tax Expense:
Federal and state income taxes, net (1,451) (1,451)
------------- -------------
Net Income $ 2,695 $ 2,695
============= =============
Note: In the opinion of the Company, all adjustments necessary for a fair
presentation of financial position for the period shown have been made.
See accompanying notes to financial statements.
HEC/CJTS ENERGY CENTER LLC
BALANCE SHEET
(Unaudited)
December 31,
2001
------------
(Thousands
of Dollars)
ASSETS
------
Current Assets:
Cash $ 1
-----------
Total current assets 1
-----------
Total Assets $ 1
============
LIABILITIES AND STOCKHOLDER'S EQUITY
------------------------------------
Stockholder's Equity:
Capital surplus, paid in 10
Retained deficit (9)
------------
Total stockholder's equity 1
------------
Total Liabilities and Stockholder's Equity $ 1
============
Note: In the opinion of the Company, all adjustments necessary for a fair
presentation of financial position for the period shown have been made.
See accompanying notes to financial statements.
HEC/CJTS ENERGY CENTER LLC
INCOME STATEMENT
(Unaudited)
Three Months Twelve Months
Ended Ended
December 31, December 31,
2001 2001
------------- -------------
(Thousands (Thousands
of Dollars) of Dollars)
Operating Revenues $ - $ -
---------- ----------
Operating Expenses:
Other 9 9
---------- ----------
Total operating expenses 9 9
---------- ----------
Net Loss $ (9) $ (9)
========== ==========
Note: In the opinion of the Company, all adjustments necessary for a fair
presentation of financial position for the period shown have been made.
See accompanying notes to financial statements.
Northeast Utilities
Select Energy, Inc.
Northeast Generation Services Company and Subsidiaries
E.S. Boulos Company
NGS Mechanical, Inc.
Select Energy Contracting, Inc.
Reeds Ferry Supply Co., Inc.
HEC/Tobyhanna Energy Project, Inc.
HEC/CJTS Energy Center, LLC
ERI/HEC EFA-Med, LLC
Yankee Energy Services Company
R.M. Services, Inc.
Acumentrics Corporation
Select Energy New York, Inc.
Notes to Financial Statements (Unaudited)
1. About Northeast Utilities
Northeast Utilities (NU) is the parent company of the Northeast Utilities
system (NU system). The NU system's regulated utilities furnish franchised
retail electric service in Connecticut, New Hampshire and western
Massachusetts through three wholly owned subsidiaries: The Connecticut Light
and Power Company (CL&P), Public Service Company of New Hampshire (PSNH) and
Western Massachusetts Electric Company (WMECO). Another wholly owned
subsidiary, North Atlantic Energy Corporation, sells all of its entitlement
to the capacity and output of the Seabrook Station nuclear unit (Seabrook) to
PSNH under the terms of two life-of-unit, full cost recovery contracts
(Seabrook Power Contracts). A fifth wholly owned subsidiary, Holyoke Water
Power Company (HWP), also is engaged in the production of electric power. A
sixth wholly owned subsidiary, Yankee Energy System, Inc. (Yankee), the
parent company of Yankee Gas Services Company, is Connecticut's largest
natural gas distribution system.
Several wholly owned subsidiaries of NU provide support services for the NU
system companies and, in some cases, for other New England utilities.
Northeast Utilities Service Company provides centralized accounting,
administrative, engineering, financial, information resources, legal,
operational, planning, purchasing, and other services to the NU system
companies. North Atlantic Energy Service Corporation has operational
responsibility for Seabrook. Three other subsidiaries construct, acquire or
lease some of the property and facilities used by the NU system companies.
NU Enterprises, Inc. (NUEI) is a wholly owned subsidiary of NU and acts as
the holding company for certain of NU's competitive energy subsidiaries.
Northeast Generation Company (NGC) was formed to acquire and manage
generation facilities. Select Energy, Inc. (Select Energy), Northeast
Generation Services Company and its subsidiaries (NGS), Select Energy
Services, Inc., and its subsidiaries (SESI), and Mode 1 Communications, Inc.,
engage in a variety of energy-related and telecommunications activities, as
applicable, primarily in the competitive energy retail and wholesale
commodity, marketing and services fields. E.S. Boulos Company (Boulos) and
NGS Mechanical, Inc. (NGS Mechanical) are wholly owned subsidiaries of NGS.
Select Energy Contracting, Inc. (Select Energy Contracting), Reeds Ferry
Supply Co., Inc. (Reeds Ferry), HEC/Tobyhanna Energy Project, Inc.,
(HEC/Tobyhanna), and HEC/CJTS Energy Center, LLC (HEC/CJTS) are wholly owned
subsidiaries of SESI. Another company, ERI/HEC EFA-Med, LLC (ERI/HEC), is
50 percent owned by SESI.
Yankee maintains certain wholly owned subsidiaries including Yankee Energy
Services Company (YESCO) and owns 10 percent of the voting securities of
R. M. Services, Inc. (R.M. Services).
On September 26, 2000, NUEI invested $10 million in Acumentrics Corporation
(Acumentrics) in return for a 5 percent ownership share of that company.
On November 30, 2001, Select Energy acquired Niagara Mohawk Energy Marketing,
Inc. (NMEM) for $31.7 million. This business was subsequently renamed Select
Energy New York, Inc. (SENY).
Select Energy, NGS, Boulos, NGS Mechanical, Select Energy Contracting, Reeds
Ferry, HEC/Tobyhanna, HEC/CJTS, ERI/HEC, YESCO, R.M. Services, Acumentrics,
and SENY are "energy-related companies" under Rule 58.
2. About Select Energy
Select Energy is an integrated energy business that buys, markets and sells
electricity, gas, oil and energy-related products and services to both
wholesale and retail customers in the Northeastern United States. Select
Energy procures and delivers energy and capacity required to serve its
electric, gas and oil customers. Select Energy, collectively with its
affiliated competitive energy businesses, provides a wide range of energy
products and energy services.
Select Energy is a licensed retail electricity supplier and is registered
with local electric distribution companies in the states of Connecticut,
Delaware, Maine, Maryland, Massachusetts, New Jersey, New York, Pennsylvania,
Rhode Island, and Virginia. Select Energy is a registered gas marketer with
local gas distribution companies in the states of Connecticut, Delaware,
Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York,
Pennsylvania, Rhode Island, and Virginia.
3. About NGS
NGS was formed to provide management, operation and maintenance services to
the electric generation market, as well as to large industrial customers, in
the Northeast. NGS also provides consulting services which include
engineering services, construction management, permitting, and compliance
management.
4. About Boulos
On January 19, 2001, NGS completed the acquisition of Boulos, an electrical
construction company which specializes in high voltage electrical
construction and maintenance in Maine, Massachusetts, New Hampshire, and
Vermont. Boulos is wholly owned by NGS.
5. About NGS Mechanical
In January 2001, NGS formed a new subsidiary, NGS Mechanical, to provide
mechanical services initially in certain New England states and New York.
NGS Mechanical is wholly owned by NGS.
6. About Select Energy Contracting
Select Energy Contracting, formerly known as HEC International Corporation,
designs, manages, and directs the construction of, and/or installation of
mechanical, water and electrical systems, energy and other resource consuming
equipment.
7. About Reeds Ferry
Reeds Ferry was acquired by SESI in August 1999 as an equipment wholesaler to
purchase equipment on behalf of Select Energy Contracting.
8. About HEC/Tobyhanna
Effective September 30, 1999, HEC/Tobyhanna was established as a special
purpose entity to manage the assets of an Energy Savings Performance Contract
at the Tobyhanna Army Depot.
9. About HEC/CJTS
HEC/CJTS was formed on March 2, 2001, as a special purpose entity to
facilitate the financing of SESI's construction of the Connecticut Juvenile
Training School in Middletown, Connecticut. HEC/CJTS is wholly owned by
SESI.
10. About ERI/HEC
ERI/HEC was established on September 30, 2000, by SESI and ERI Services, Inc.
to enter into an indefinite delivery/indefinite quantity contract with the
United States Navy. ERI/HEC is 50 percent owned by SESI.
11. About YESCO
YESCO is winding down its energy-related services for its customers. YESCO
has disposed of most of its assets and is in the process of liquidating the
remainder of its assets.
12. About R.M. Services
R. M. Services provides consumer collection services for companies throughout
the United States.
13. About Acumentrics
On September 26, 2000, NUEI invested $10 million in Acumentrics in return for
a 5 percent ownership share of that company. Acumentrics is a privately
owned producer of advanced power generation and power protection technologies
applicable to homes, telecommunications, commercial businesses, industrial
facilities, and the auto industry.
14. About SENY
On November 30, 2001, Select Energy acquired NMEM for $31.7 million. This
business was subsequently renamed SENY. SENY is a wholly owned subsidiary of
Select Energy and engages in the brokering, marketing, transportation,
storage, and sale of energy commodities in the state of New York.
15. Public Utility Regulation
NU is registered with the Securities and Exchange Commission (SEC) as a
holding company under the Public Utility Holding Company Act of 1935 (1935
Act), and the NU system is subject to the provisions of the 1935 Act.
Arrangements among the NU system companies, outside agencies and other
utilities covering interconnections, interchange of electric power and sales
of utility property are subject to regulation by the Federal Energy
Regulatory Commission (FERC) and/or the SEC. The operating subsidiaries are
subject to further regulation for rates, accounting and other matters by the
FERC and/or applicable state regulatory commissions.
16. Presentation
The preparation of financial statements requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
17. Market Risk and Risk Management Instruments
Select Energy provides both firm requirement energy services to its customers
and engages in energy trading and marketing activities. Select Energy
manages its exposure to risk from existing contractual commitments and
provides risk management services to its customers through forward contracts,
futures, over-the-counter swap agreements, and options (commodity
derivatives).
Select Energy has utilized the sensitivity analysis methodology to disclose
the quantitative information for its commodity price risks. Sensitivity
analysis provides a presentation of the potential loss of future earnings,
fair values or cash flows from market risk-sensitive instruments over a
selected time period due to one or more hypothetical changes in commodity
prices, or other similar price changes.
Commodity Price Risk - Trading Activities: As a market participant in the
Northeast United States, Select Energy conducts commodity-trading activities
in electricity and its related products, natural gas and oil and, therefore,
experiences net open positions. Select Energy manages these open positions
with strict policies which limit its exposure to market risk and require
daily reporting to management of potential financial exposure. Commodity
derivatives utilized for trading purposes are accounted for using the mark-to-
market method, under Emerging Issues Task Force Issue No. 98-10, "Accounting
for Energy Trading and Risk Management Activities." Under this methodology,
these instruments are adjusted to market value, and the unrealized gains and
losses are recognized in income in the current period in the statements of
income as fuel, purchased and net interchange power and in the balance sheets
as prepayments and other. The mark-to-market position at December 31, 2001,
was a positive $44.4 million.
Under sensitivity analysis, the fair value of the portfolio is a function of
the underlying commodity, contract prices and market prices represented by
each derivative commodity contract. For swaps, forward contracts and
options, market value reflects management's best estimates considering over-
the-counter quotations, time value and volatility factors of the underlying
commitments. Exchange-traded futures and options are recorded at market,
based on closing exchange prices.
As of December 31, 2001, Select Energy has calculated the market price
resulting from a 10 percent unfavorable change in forward market prices.
That 10 percent change would result in approximately a $0.6 million decline
in the fair value of the Select Energy trading portfolio. In the normal
course of business, Select Energy also faces risks that are either
nonfinancial or nonquantifiable. Such risks principally include credit risk,
which is not reflected in the sensitivity analysis above.
Commodity Price Risk - Nontrading Activities: Select Energy utilizes
derivative financial and commodity instruments (derivatives), including
futures and forward contracts, to reduce market risk associated with
fluctuations in the price of electricity and natural gas sold under firm
commitments with certain customers. Select Energy also utilizes derivatives,
including price swap agreements, call and put option contracts, and futures
and forward contracts, to manage the market risk associated with a portion of
its anticipated supply requirements. These derivative instruments have been
designated as cash flow hedging instruments.
When conducting sensitivity analysis of the change in the fair value of
Select Energy's electricity, natural gas and oil nontrading portfolio, which
would result from a hypothetical change in the future market price of
electricity, natural gas and oil, the fair value of the contracts are
determined from models which take into account estimated future market prices
of electricity, natural gas and oil, the volatility of the market prices in
each period, as well as the time value factors of the underlying commitments.
In most instances, market prices and volatility are determined from quoted
prices on the futures exchange.
Select Energy has determined a hypothetical change in the fair value for its
nontrading electricity, natural gas and oil contracts, assuming a 10 percent
unfavorable change in forward market prices. As of December 31, 2001, an
unfavorable 10 percent change in forward market price would have resulted in
a decrease in fair value of approximately $29 million.
The impact of a change in electricity, natural gas and oil prices on Select
Energy's nontrading contracts on December 31, 2001, is not necessarily
representative of the results that will be realized when these contracts are
physically delivered.
Select Energy also maintains natural gas service agreements with certain
customers to supply gas at fixed prices for terms extending through 2004.
Select Energy has hedged its gas supply risk under these agreements through
NYMEX contracts. Under these contracts, the purchase price of a specified
quantity of gas is effectively fixed over the term of the gas service
agreements, which extend through 2004. As of December 31, 2001, the NYMEX
contracts had a notional value of $91.3 million and a negative after-tax mark-
to-market position of $14.7 million.
Derivative Cash Flow Hedge Accounting: Derivative instruments recorded which
were effective cash flow hedges resulted in an increase in other
comprehensive income of $12.3 million, net of tax, upon the adoption of
Statement of Financial Accounting Standards No. 133, "Accounting for
Derivative Instruments and Hedging Activities," as amended. During 2001, a
positive $4.5 million, net of tax, was reclassified from other comprehensive
income upon the conclusion of these hedged transactions and recognized in
earnings. An additional $1.3 million, net of tax, was recognized in earnings
for those derivatives that were determined to be ineffective. Also, during
2001, new cash flow hedge transactions were entered into which hedge cash
flows through 2027. As a result of these new transactions and market value
changes since January 1, 2001, other comprehensive income decreased by $53.7
million, net of tax. Accumulated other comprehensive income at December 31,
2001, was a negative $36.9 million, net of tax (decrease to equity), relating
to hedged transactions and it is estimated that $29.4 million, net of tax,
will be reclassified as a charge to earnings within the next twelve months.
Cash flows from the hedge contracts are reported in the same category1 as
cash flows from the hedged assets.
18. Special Deposits
Special deposits include cash collateral posted in connection with various
power purchase and sales agreements.
QUARTERLY REPORT OF SELECT ENERGY, INC.
SIGNATURE CLAUSE
Pursuant to the requirements of the Public Utility Holding Company Act
of 1935 and the rules and regulations of the Securities and Exchange
Commission issued thereunder, the undersigned company has duly caused
this report to be signed on its behalf by the undersigned officer
thereunto duly authorized.
NORTHEAST UTILITIES
-------------------
(Registered Holding Company)
By: /s/ John P. Stack
------------------------------
(Signature of Signing Officer)
John P. Stack
Vice President-Accounting and Controller
Date: March 27, 2002