UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
__________
FORM 11-K
(Mark one)
X ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2004
TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 1-14766
Full title of the plan and the address of the plan, if different from
that of the issuer named below:
Berkshire Energy Resources Retirement Savings Plan
for Union Employees
115 Cheshire Road
Pittsfield, Massachusetts 01201
Name of issuer of the securities held pursuant to the plan
and the address of its principal executive office:
Energy East Corporation
52 Farm View Drive
New Gloucester, Maine 04260-5116
REQUIRED INFORMATION
The Berkshire Energy Resources Retirement Savings Plan for Union Employees (Plan) is subject to the Employee Retirement Income Security Act of 1974 (ERISA). Therefore, in lieu of the requirements of Items 1-3 of Form 11-K, the financial statements of the Plan for the two fiscal years ended December 31, 2004 and 2003 and supplemental schedules, which have been prepared in accordance with the financial reporting requirements of ERISA, are attached hereto as Appendix 1 and incorporated herein by reference.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Committee to administer the Plan has duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.
Berkshire Energy Resources Retirement Savings Plan for Union Employees
Date: June 28, 2005 | By /s/James E. Earley
James E. Earley
Committee Member
|
Date: June 28, 2005 | By /s/Richard R. Benson
Richard R. Benson
Committee Member
|
Date: June 28, 2005 | By /s/Robert D. Kump
Robert D. Kump
Committee Member |
APPENDIX 1
BERKSHIRE ENERGY RESOURCES RETIREMENT SAVINGS PLAN
FOR UNION EMPLOYEES
FINANCIAL STATEMENTS AS OF AND
FOR THE YEARS ENDED DECEMBER 31, 2004 AND 2003
SUPPLEMENTAL SCHEDULES AS OF DECEMBER 31, 2004
AND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Berkshire Energy Resources Retirement Savings Plan for Union Employees
Index to Financial Statements and Supplemental Schedules
Report of Independent Registered Public Accounting Firm - Baker Newman & Noyes, LLC | 1 |
| | |
Report of Independent Registered Public Accounting Firm - PricewaterhouseCoopers, LLP | 2 |
| | |
| | |
Financial Statements:
Statements of Net Assets Available for Benefits -
December 31, 2004 and 2003 |
3
|
| | |
Statements of Changes in Net Assets Available for Benefits -
Years ended December 31, 2004 and 2003 |
4
|
| | |
Notes to Financial Statements | 5 |
| | |
Supplemental Schedules* | |
| | |
Schedule H, line 4i - Schedule of Assets (Held at End of Year) | 9 |
| | |
Schedule H, line 4j - Schedule of Reportable Transactions | 10 |
| | |
Consent of Independent Registered Public Accounting Firm - Baker Newman & Noyes, LLC | Exhibit 23.1 |
| | |
Consent of Independent Registered Public Accounting Firm - PricewaterhouseCoopers, LLP | Exhibit 23.2 |
*Other supplemental schedules required by Section 2520.103-10 of the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974 have been omitted because they are not applicable.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Participants and Administrative Committee of the
Berkshire Energy Resources Retirement Savings Plan
for Union Employees
We have audited the accompanying statement of net assets available for benefits of the Berkshire Energy Resources Retirement Savings Plan for Union Employees (the Plan) as of December 31, 2004, and the related statement of changes in net assets available for benefits for the year ended December 31, 2004. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audit. The financial statements of the Plan for the year ended December 31, 2003 were audited by other auditors whose report, dated June 24, 2004, expressed an unqualified opinion on those statements.
We conducted our audit in accordance with the auditing standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Berkshire Energy Resources Retirement Savings Plan for Union Employees as of December 31, 2004, and the changes in its net assets available for benefits for the year ended December 31, 2004, in conformity with accounting principles generally accepted in the United States of America.
Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedule of assets (held at end of year) and reportable transactions as of or for the year ended December 31, 2004, are presented for the purpose of additional analysis and are not a required part of the basic financial statements, but are supplementary information required by the United States Department of Labor Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental schedules are the responsibility of the Plan's management. The supplemental schedules have been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole.
The schedule of reportable transactions that accompanies the Plan's financial statements does not disclose the historical cost and net gain or loss on certain transactions. Disclosure of this information is required by the United States Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974.
| | /s/ Baker Newman & Noyes
Limited Liability Company |
Portland, Maine
June 24, 2005 | |
Report of Independent Registered Public Accounting Firm
To the Participants and Administrative Committee of the
Berkshire Energy Resources Retirement Savings Plan for Union Employees
In our opinion, the accompanying statement of net assets available for benefits and the related statement of changes in net assets available for benefits present fairly, in all material respects, the net assets available for benefits of the Berkshire Energy Resources Retirement Savings Plan for Union Employees (the "Plan") at December 31, 2003, and the changes in net assets available for benefits for the year then ended in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the Plan's management; our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit of these statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining , on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
New York, New York
June 24, 2004
Berkshire Energy Resources Retirement Savings Plan for Union Employees
Statements of Net Assets Available for Benefits
December 31, 2004 and 2003
| | 2004 | 2003 |
| | |
Assets: | | |
Investments, at fair value: | | |
Registered Investment Companies | $ 6,033,461 | $ 6,194,118 |
Common/Collective Trust | 1,002,127 | 177,344 |
Energy East Stock Fund | 291,609 | 208,210 |
Participant loans | 374,479 | 263,824 |
| | |
| | 7,701,676 | 6,843,496 |
| | |
Receivable: | | |
Contributions Receivable | 19,915 | - |
| | | |
| | |
Net assets available for benefits | $ 7,721,591 | $ 6,843,496 |
| | |
| | |
See notes to financial statements.
Berkshire Energy Resources Retirement Savings Plan for Union Employees
Statements of Changes in Net Assets Available for Benefits
Year Ended December 31, 2004 and 2003
| 2004 | 2003 |
| | |
Additions: | | |
Investment income: | | |
Net appreciation in fair value of investments | $ 512,454 | $ 1,065,141 |
Interest and dividends | 119,698 | 142,317 |
| | |
| | 632,152 | 1,207,458 |
| | |
Contributions:
| | |
Participant | 341,075 | 117,374 |
Employer | 100,263 | 34,788 |
Contributions Receivable - Employer | 4,580 | - |
Contributions Receivable - Employee | 15,335 | - |
| | |
| | 461,253 | 152,162 |
| | |
Total additions
|
1,093,405
|
1,359,620
|
| | |
Deductions:
| | |
Benefits paid to participants | 207,376 | 573,457 |
Administrative expenses | - | 470 |
Transfers to other qualified plans | 7,934 | 77,830 |
| | |
Total deductions
|
215,310
|
651,757
|
| | |
Net increase
|
878,095
|
707,863
|
Net assets available for benefits:
Beginning of year
|
6,843,496
|
6,135,633
|
| | |
End of year
|
$ 7,721,591
|
$ 6,843,496
|
| | |
| | |
See notes to financial statements.
Berkshire Energy Resources Retirement Savings Plan for Union Employees
Notes to Financial Statements
December 31, 2004 and 2003
1. DESCRIPTION OF THE PLAN
The following description of the Berkshire Energy Resources (Company) Retirement Savings Plan for Union Employees (Plan) provides only general information. Participants should refer to the Plan document for a more complete description of the Plan's provisions.
General
The Plan was established by the Company under the provisions of Section 401(a) of the Internal Revenue Code (Code), and it includes a qualified cash or deferred arrangement as described in Section 401(k) of the Code for the benefit of eligible employees of the Company. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974. The Plan Administrator is the Company and an Administrative Committee has been appointed to serve as manager of the Plan.
The Plan is a defined contribution plan covering union employees of the Company, as well as the employees of Energy East Corporation's (Energy East) family of companies that elect to participate under the Plan provisions. Energy East, the parent corporation of the Company, through its subsidiaries, delivers electricity and natural gas to retail customers and provides electricity, natural gas, energy management and other services to retail and wholesale customers in the Northeast.
Eligibility
Employees are eligible to participate in the Plan as of the first day of the month following completion of at least 1,000 hours of service during a twelve month period, if they are at least age 21, are employed full time, and are covered by a collective bargaining agreement between the Company and any union which provides for participation in the Plan.
Contributions
Eligible employees may elect to participate in the Plan and authorize payroll deductions of not less than 1% and not greater than 50% of pretax earnings as contributions to their accounts during each year, subject to Code limitations. As of January 1, 2002, participants age 50 or over by the end of the Plan year can make an additional contribution to the Plan in accordance with and subject to the limitations of Section 414(v) of the Code. The maximum additional contribution in 2003 was $2,000 and increases by $1,000 a year until the additional contribution reaches a maximum of $5,000 in 2006.
As of April 1, 2002, the Plan accepts rollovers from other qualified plans, as well as 403(b) and government 457 plans, traditional Individual Retirement Accounts (IRAs), conduit IRAs (but not Roth IRAs), after-tax distributions from employer retirement plans and spousal death benefit payments.
The Company will match 100% of the first 1% of participant contributions and 50% of the next 5% of participant contributions, for a possible total Company match of 3.5% of a participant's eligible compensation.
Berkshire Energy Resources Retirement Savings Plan for Union Employees
Notes to Financial Statements
December 31, 2004 and 2003
1. DESCRIPTION OF THE PLAN (Continued)
Benefit Payments
Upon termination of employment due to retirement, disability, or death, a participant (or a participant's beneficiary) may elect to receive a lump sum distribution equal to the value of the participant's vested interest in the participant's account as soon as practicable following the termination date or defer the distribution to some future date.
Participants may request the withdrawal of certain account balances prior to termination of employment due to financial hardship.
Vesting
Participants are fully vested in participant contributions and the Company's matching contributions and earnings thereon without regards to the number of years of continuous service.
Participant Loans
A Plan participant may borrow a minimum of $1,000 and up to a maximum of one-half of the participant's vested account balance or $50,000, less the highest outstanding loan balance in the prior twelve months, whichever is less. Each loan carries an interest rate of prime plus 1%, established on the first day of the calendar quarter in which the loan is made. Interest rates on loans outstanding at year end range from 5.00% to 10.50% for 2004 and 2003. Security for each loan is provided by the Plan participant's vested account balance. Payments are made ratably through payroll deductions. If a participant's employment terminates for any reason, the loan will become immediately due and payable and must be paid within 90 days from the date of termination.
Participants are allowed to have one loan outstanding at a time, unless a second loan is taken for the purchase of a primary residence.
Participant Accounts
Individual accounts are maintained for each of the Plan's participants to reflect the participant's share of the Plan's income, the participant's and the Company's contributions, and the participant's loan(s), if applicable. Allocations of Plan income are based on the share balances in the participants' accounts.
Berkshire Energy Resources Retirement Savings Plan for Union Employees
Notes to Financial Statements
December 31, 2004 and 2003
2. SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The financial statements are prepared on an accrual basis and in conformity with accounting principles generally accepted in the United States of America, which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Estimates also affect the reported amounts of additions and deductions during the reporting period. Actual results could differ from those estimates.
Investment Valuation and Income Recognition
The Plan's investments are stated at fair value. Shares of registered investment companies are valued at the net asset value of shares held by the Plan at year-end. Units of common/collective trust funds are valued at the net asset value of units held by the Plan at year-end. The Energy East Stock Fund, comprised solely of Energy East common stock, is valued at its quoted market price at year-end. Participant loans are valued at cost, which approximates fair value.
Purchases and sales of investments are recorded on a trade-date basis. Interest income is accrued when earned. Dividend income is recorded on the ex-dividend date.
Payments of Benefits
Benefits are recorded when paid.
Plan Termination
Although the Company has not expressed any intent to terminate the Plan, it has the right to discontinue contributions at any time and to terminate the Plan subject to the company's collective bargaining agreement. In the event of termination of the Plan, the net assets of the Plan are set aside, first, for the payment of all Plan expenses and, second, for the distribution to the participants, based upon the balances in their individual accounts.
Risk and Uncertainties
The Plan provides for various investment options in any combination of stocks, fixed income securities, mutual funds, and other investment securities. Investment securities are exposed to various risks, such as interest rate, market and credit risk. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in risk in the near term could materially affect participants' account balances and the amounts reported in the Statements of Net Assets Available for Benefits and the Statements of Changes in Net Assets Available for Benefits.
Berkshire Energy Resources Retirement Savings Plan for Union Employees
Notes to Financial Statements
December 31, 2004 and 2003
3. INVESTMENTS
The following presents investments that represent 5% or more of the Plan's net assets at December 31, 2004 and 2003:
| | 2004 | 2003 |
| | |
PIMCO Total Return Fund | $ 494,624 | $ 487,614 |
Putnam Asset Allocation: Growth Fund | - | 2,501,737 |
Putnam Asset Allocation: Balanced Fund | - | 451,812 |
Putnam OTC & Emerging Growth Fund | - | 572,203 |
Putnam Fund for Growth and Income | - | 721,202 |
Putnam Money Market Fund | - | 1,020,061 |
T. Rowe Price Equity Income Fund | 840,615 | - |
J. P. Morgan Stable Value Fund | 1,002,127 | - |
T. Rowe Price Retirement 2015 Fund | 1,195,261 | - |
T. Rowe Price Retirement 2020 Fund | 1,088,841 | - |
T. Rowe Price Retirement 2025 Fund | 536,258 | - |
Vanguard Explorer | 724,509 | - |
Plan investments (including gains and losses on investments bought and sold, as well as held during the year) appreciated in value during 2004 and 2003, as follows:
| | 2004 | 2003 |
| | |
Registered Investment Companies | $ 452,405 | $ 988,202 |
Common/Collective Trust | 16,019 | 42,328 |
Energy East Stock Fund | 44,030 | 34,611 |
| | |
| | $ 512,454 | $ 1,065,141 |
| | |
| | |
4. INCOME TAX STATUS
The Plan Administrator and management believe that the Plan is designed and is currently being operated in compliance with the applicable requirements of the Code.
5. RELATED PARTY TRANSACTIONS
Certain Plan investments are shares of registered investment companies which were managed by Putnam Fiduciary Trust Company (Putnam) through December 30, 2004 and by T. Rowe Price Retirement Plan Services (T. Rowe Price) as of December 31, 2004. Putnam was the trustee as defined by the Plan through December 30, 2004 and T. Rowe Price became the trustee as defined by the Plan effective December 31, 2004; therefore, these transactions qualify as party-in-interest transactions and are exempt from the prohibited transaction rules.
6. ADMINISTRATIVE EXPENSES
Substantially all of the administrative expenses are paid for by the Company.
Berkshire Energy Resources Retirement Savings Plan for Union Employees
Schedule H, line 4i - Schedule of Assets (Held at End of Year)
December 31, 2004
| | Identity of Issue | Description of Investment | Current Value |
| | | |
| | | | |
| | Pimco Total Return Fund | Registered Investment Company | $ 494,624 |
* | T. Rowe Price Equity Income Fund | Registered Investment Company | 840,615 |
| | Fidelity Diversified International Fund | Registered Investment Company | 34,002 |
* | T. Rowe Price Growth Stock Fund | Registered Investment Company | 261,235 |
| | J. P. Morgan Stable Value Fund | Common/Collective Trust | 1,002,127 |
* | T. Rowe Price Retirement Income Fund | Registered Investment Company | 106,032 |
* | T. Rowe Price Retirement 2005 Fund | Registered Investment Company | 197,675 |
* | T. Rowe Price Retirement 2010 Fund | Registered Investment Company | 183,572 |
* | T. Rowe Price Retirement 2015 Fund | Registered Investment Company | 1,195,261 |
* | T. Rowe Price Retirement 2020 Fund | Registered Investment Company | 1,088,841 |
* | T. Rowe Price Retirement 2025 Fund | Registered Investment Company | 536,258 |
* | T. Rowe Price Retirement 2030 Fund | Registered Investment Company | 178,088 |
* | T. Rowe Price Retirement 2035 Fund | Registered Investment Company | 31,305 |
| | Vanguard Explorer | Registered Investment Company | 724,509 |
| | Vanguard Institutional Index Fund | Registered Investment Company | 161,444 |
* | Energy East Corporation Stock | Energy East Stock Fund | 291,609 |
| | Loan Fund | Participant Loans (5.00% - 10.50%) | 374,479 |
| | | |
| | Total assets held at end of year | | $7,701,676 |
| | | |
| | | | |
* | Party-in-interest | | |
Berkshire Energy Resources Retirement Savings Plan for Union Employees
Schedule H, Line 4j -Schedule of Reportable Transactions
Year Ended December 31, 2004
(a)
Identity of
Party Involved | (b)
Description of Assets
(Include Interest Rate and
Maturity in Case of Loan) | (c)
Purchase
Price | (d)
Sales
Price |
| | | | |
| | | |
*Putnam Investments | Putnam Fund for Growth and Income | $ - | $ 840,615 |
*Putnam Investments | Putnam Money Market Fund | - | 1,002,127 |
*Putnam Investments | Putnam Asset Allocation: Growth Fund | - | 2,839,932 |
*Putnam Investments | Putnam Asset Allocation: Balanced Fund | - | 509,238 |
*Putnam Investments | Putnam OTC & Emerging Growth Fund | - | 654,389 |
Putnam Investments | PIMCO Total Return Fund | - | 487,799 |
*T. Rowe Price | T. Rowe Price Equity Income Fund | 840,615 | - |
*T. Rowe Price | T. Rowe Price Retirement 2015 Fund | 1,195,261 | - |
*T. Rowe Price | T. Rowe Price Retirement 2020 Fund | 1,088,841 | - |
*T. Rowe Price | T. Rowe Price Retirement 2025 Fund | 536,258 | - |
T. Rowe Price | P. Morgan Stable Value Fund | 1,002,127 | - |
T. Rowe Price | Vanguard Explorer | 724,509 | - |
T. Rowe Price | PIMCO Total Return Fund | 494,624 | - |
(e)
Lease
Rental | (f)
Expense
Incurred with
Transaction | (g)
Cost
of Asset | (h)
Current Value
of Asset on
Transaction Date | (i)
Net Gain
or (Loss) |
| | | | |
$ - | $ - | $ - | $ 840,615 | $ - |
- | - | - | 1,002,127 | - |
- | - | - | 2,839,932 | - |
- | - | - | 509,238 | - |
- | - | - | 654,389 | - |
- | - | - | 487,799 | - |
- | - | 840,615 | 840,615 | - |
- | - | 1,195,261 | 1,195,261 | - |
- | - | 1,088,841 | 1,088,841 | - |
- | - | 536,258 | 536,258 | - |
- | - | 1,002,127 | 1,002,127 | - |
- | - | 724,509 | 724,509 | - |
- | - | 494,624 | 494,624 | - |
* Indicates party-in-interest.
Note: The above transactions represent mandated purchases and sales upon the change in trustee. All other transactions were participant-directed, and thus are not presented on this schedule.
