1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark one)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1994
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period _________________ to ___________________
Commission File Number 1-5366
EASTERN UTILITIES ASSOCIATES
(Exact name of registrant as specified in its charter)
Massachusetts 04-1271872
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
One Liberty Square, Boston, Massachusetts
(Address of principal executive offices)
02109
(Zip Code)
(617)357-9590
(Registrant's telephone number including area code)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or for
period that the registrant was required to file such reports), and
(2) has been subject to such filing requirements for the past 90 days.
Yes...X.......No..........
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practical date.
Class Outstanding at October 31, 1994
Common Shares, $5 par value 19,825,912 shares
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
EASTERN UTILITIES ASSOCIATES
CONSOLIDATED CONDENSED BALANCE SHEETS
(In Thousands)
September 30, December 31,
ASSETS 1994 1993
Utility Plant and Other Investments:
Utility Plant in Service $ 1,019,306 $ 1,016,453
Less: Accumulated Provision for Depreciation
and Amortization 316,401 296,995
Net Utility Plant in Service 702,905 719,458
Construction Work in Progress 20,597 8,728
Net Utility Plant 723,502 728,186
Investments in Jointly Owned Companies 71,060 73,632
Non-Utility Plant - Net 112,465 104,462
Total Plant and Other Investments 907,027 906,280
Current Assets:
Cash and Temporary Cash Investments 26,239 4,180
Accounts Receivable, Net 80,760 84,839
Notes Receivable 9,267 11,736
Materials and Supplies 11,251 13,133
Other Current Assets 16,014 16,340
Total Current Assets 143,531 130,228
Deferred Debits and Other Non-Current Assets 162,019 166,629
Total Assets $ 1,212,577 $ 1,203,137
LIABILITIES AND CAPITALIZATION
Capitalization:
Common Shares, $5 Par Value $ 99,089 $ 95,163
Other Paid-In Capital 210,698 202,182
Common Share Expense (3,838) (3,822)
Retained Earnings 56,126 39,642
Total Common Equity 362,075 333,165
Non-Redeemable Preferred Stock - Net 6,900 6,900
Redeemable Preferred Stock - Net 25,337 25,053
Long-Term Debt - Net 492,457 496,816
Total Capitalization 886,769 861,934
Current Liabilities:
Long-Term Debt Due Within One Year 6,810 5,415
Notes Payable 31,581 37,168
Preferred Stock Sinking Fund 50 50
Accounts Payable 26,037 36,111
Taxes Accrued 5,783 12,299
Interest Accrued 10,658 10,688
Other Current Liabilities 24,073 19,285
Total Current Liabilities 104,992 121,016
Deferred Credits and Other Non-Current Liabilities 84,214 82,747
Accumulated Deferred Taxes 136,602 137,440
Total Liabilities and Capitalization $ 1,212,577 $ 1,203,137
<FN>
See accompanying notes to consolidated condensed financial statements.
EASTERN UTILITIES ASSOCIATES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(In Thousands Except Number of Shares and Per Share Amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
1994 1993 1994 1993
Operating Revenues $ 143,859 $ 146,496 $ 431,325 $ 419,441
Operating Expenses:
Fuel 24,078 24,407 70,507 65,259
Purchased Power 33,112 35,042 97,921 103,707
Other Operation and Maintenance 45,519 46,263 134,730 128,676
Depreciation and Amortization 11,195 10,909 34,124 32,962
Taxes - Other Than Income 5,831 6,430 18,829 18,216
- Current Income 3,435 3,407 11,815 7,939
- Deferred Income (Credit) 2,480 (148) 5,373 3,984
Total 125,650 126,310 373,299 360,743
Operating Income 18,209 20,186 58,026 58,698
Other Income - Net 6,468 5,361 16,248 13,956
Income Before Interest Charges 24,677 25,547 74,274 72,654
Interest Charges:
Interest on Long-Term Debt 9,730 9,752 29,249 31,553
Other Interest Expense 1,393 1,665 5,077 4,635
Allowance for Borrowed Funds Used 0
During Construction (Credit) (345) (589) (894) (1,493)
Net Interest Charges 10,778 10,828 33,432 34,695
Net Income 13,899 14,719 40,842 37,959
Preferred Dividends of Subsidiaries 583 806 1,750 2,680
Consolidated Net Earnings $ 13,316 $ 13,913 $ 39,092 $ 35,279
Weighted Average Number of
Common Shares Outstanding 19,762,952 18,783,789 19,602,771 18,222,550
Consolidated Earnings Per
Average Common Share $ 0.67 $ 0.74 $ 1.99 $ 1.94
Dividends Paid $ 0.385 $ .36 $ 1.13 $ 1.06
<FN>
See accompanying notes to consolidated condensed financial statements.
EASTERN UTILITIES ASSOCIATES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(In Thousands)
Nine Months Ended
September 30,
1994 1993
CASH FLOW FROM OPERATING ACTIVITIES:
Net Income $ 40,843 $ 37,959
Adjustments to Reconcile Net Income
to Net Cash Provided from Operating Activities:
Depreciation and Amortization 41,136 41,130
Deferred Taxes 6,083 4,503
Gains on Sales of Investments in Energy Savings
Projects Paid for with Notes Receivable (2,784) (2,278)
Investment Tax Credit, Net (885) (1,001)
Allowance for Other Funds Used During Construction (205) (261)
Other - Net 2,376 3,853
Change in Operating Assets and Liabilities (5,688) (13,125)
Net Cash Provided From Operating Activities 80,876 70,780
CASH FLOW FROM INVESTING ACTIVITIES:
Construction Expenditures (34,535) (56,087)
Collections on Notes and Lease Receivables of EUA Cogenex 10,687 2,898
Acquisition of Northeast Energy Management, Inc. (8,567)
Increase in Other Investments (330)
Net Cash (Used in) Investment Activities (32,745) (53,189)
CASH FLOW FROM FINANCING ACTIVITIES:
Issuances:
Common Stock 7,096 43,882
Long-Term Debt 7,927 245,000
Preferred Stock 0 30,000
Redemptions:
Preferred Stock 0 (35,600)
Long-Term Debt (10,975) (207,561)
Premium on Reacquisition and Financing Expenses (677) (13,061)
EUA Common Share Dividends Paid (22,162) (19,320)
Subsidiary Preferred Dividends Paid (1,750) (3,007)
Net Decrease in Short-Term Debt (5,531) (75,656)
Net Cash (Used in) Financing Activities (26,072) (35,323)
Net Increase (Decrease) in Cash and Temporary Cash Invest 22,059 (17,732)
Cash and Temporary Cash Investments
at Beginning of Period 4,180 29,614
Cash and Temporary Cash Investments
at End of Period $ 26,239 $ 11,882
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest (Net of Capitalized Interest) $ 30,928 $ 38,307
Income Taxes $ 12,786 $ 6,689
Supplemental schedule of non-cash investing activities:
Conversion of Investments in Energy Savings
Projects to Notes and Leases Receivable $ 6,578 $ 8,108
<FN>
See accompanying notes to consolidated condensed financial statements.
EASTERN_UTILITIES_ASSOCIATES
NOTES_TO_CONSOLIDATED_CONDENSED_FINANCIAL_STATEMENTS
The accompanying Notes should be read in conjunction with the Notes to
Consolidated Financial Statements incorporated in the Eastern Utilities
Associates (EUA or the Company) 1993 Annual Report on Form 10-K and the
Company's Quarterly Reports on Form 10-Q for the periods ending March 31, and
June 30, 1994.
Note A - In the opinion of the Company, the accompanying unaudited consolidated
condensed financial statements contain all adjustments (consisting of
only normal recurring accruals) necessary to present fairly its
financial position as of September 30, 1994 and December 31, 1993, and
the results of operations for the three and nine months ended
September 30, 1994 and 1993 and cash flows for the nine months ended
September 30, 1994 and 1993. Certain reclassifications have been made
to prior period financial statements to conform to current period
classifications.
The Consolidated Condensed Statement of Income and the Consolidated
Condensed Statement of Cash Flows for the 1993 periods being reported
herein have been restated to reflect consolidation of EUA Cogenex
Partnerships which were previously accounted for as equity
investments. This restatement had no impact on Consolidated Net
Earnings.
In November 1992, the Financial Accounting Standards Board issued
Statement No. 112, "Employers' Accounting for Post-employment
Benefits." EUA was required to adopt this standard no later than
January 1, 1994. The estimated impact of this standard on EUA is
immaterial and therefore no liability has been recorded.
Note B - Results shown above for the respective interim periods are not neces-
sarily indicative of results to be expected for the fiscal years due
to seasonal factors which are inherent in electric utilities in New
England. A greater proportionate amount of revenues is earned in the
first and fourth quarters (winter season) of most years because more
electricity is sold due to weather conditions, fewer day-light hours,
etc.
Note C - Commitments and Contingencies:
Rate Activity
On March 21, 1994, Montaup Electric Company (Montaup), the wholesale
electric generating and transmission subsidiary of EUA, filed an
application with the Federal Energy Regulatory Commission (FERC) for
authorization to reduce its wholesale rates by $10.1 million, or three
percent. Montaup supplies electricity at wholesale to EUA's retail
electric utilities - Eastern Edison Company, Blackstone Valley
Electric Company and Newport Electric Corporation (Newport) - and to
two non-affiliated municipal utilities. This application is designed
Note C - Commitments and Contingencies (Cont'd):
to match more closely Montaup's revenues with its decreasing cost of
doing business resulting from, among other things, a reduced rate
base, lower capital costs and successful cost control efforts.
As part of the rate filing, Montaup is seeking, among other things,
authorization to become an "all-requirements" supplier to Newport.
Previously Montaup provided only a portion of Newport's electricity
requirements.
FERC allowed Montaup to implement the rate reduction effective May 21,
1994 and Montaup began billing Newport as and all-requirements
customer on that date, pending final adjudication and approval. A
settlement in principle was reached with all but two intervenors.
Montaup expects that during November the Settlement Agreement will be
filed with the FERC.
Item_2. Management's_Discussion_and_Analysis_of_Financial_Condition_and_Results
of_Operations
The following is Management's discussion and analysis of certain
significant factors affecting the Company's earnings and financial condition
for the interim periods presented in this Form 10-Q.
Overview
Consolidated Net Earnings for the quarter ended September 30, 1994
decreased approximately $0.6 million or 4.3% to approximately $13.3 million
from third quarter 1993 earnings. Net Earnings contributions by Business Unit
for the third quarter of 1994 and 1993 were as follows (000's):
Three Months Ended September 30,
Increase
1994 1993 (Decrease)
Core Electric Business $10,739 $ 9,365 $1,374
Energy Related Business 2,969 1,064 1,905
Corporate (392) 3,484 (3,876)
Consolidated $13,316 $13,913 $ (597)
======== ======= =======
Net Earnings of the Core Electric Business for the third quarter of 1994
increased by approximately $1.4 million primarily due to reduced operating and
maintenance expenses of approximately $0.8 million as more fully described in
Operation Expenses, below, approximately $0.4 million related to the current
recognition of capitalized costs on nuclear fuel contract buy-out costs
previously deferred and approximately $0.2 million of preferred dividend
requirements as a result of EUA System refinancings in 1993 and 1994. An
increase of approximately 2.8% in kilowatthour (kWh) sales also contributed to
the earnings growth.
Net Earnings of the Energy Related Business Unit increased by
approximately $1.9 million in the third quarter of 1994 as compared to the same
period of a year ago due primarily to investment tax credits of $1.3 million
utilized by EUA Ocean State Corporation (EUA Ocean State).
The Corporate Business Unit Net Earnings for the third quarter of 1994
compared to the same period in 1993 decreased by approximately $3.9 million due
primarily to the recognition of approximately $2.0 million of investment tax
credits by Eastern Utilities Associates (the Parent Company) related to the EUA
Power Corporation Settlement Agreement and an insurance policy reimbursement in
September 1993 of approximately $1.8 million for legal expenses incurred by EUA
during proceedings related to EUA Power Corporation.
Consolidated Net Earnings for the nine months ended September 30, 1994
increased approximately $3.8 million or 10.8% to approximately $39.1 million
from the same period of 1993. Net Earnings contributions by Business Unit for
the first nine months of 1994 and 1993 were as follows (000's):
Nine Months Ended September 30,
Increase
1994 1993 (Decrease)
Core Electric Business $31,381 $25,082 $6,299
Energy Related Business 8,694 5,269 3,425
Corporate (983) 4,928 (5,911)
Consolidated $39,092 $35,279 $3,813
======= ======= =======
Net Earnings of the Core Electric Business for the nine months ended
September 30, 1994 increased by approximately $6.3 million primarily due to a
significant decrease in long-term debt interest expense and preferred dividend
requirements as a result of 1993 and 1994 EUA System refinancings. The 2.6%
increase in kWh sales during the period also contributed to the earnings
growth.
Net Earnings of the Energy Related Business Unit increased by
approximately $3.4 million in the nine months ended September 30, 1994 as
compared to the same period of a year ago due primarily to investment tax
credits utilized by EUA Ocean State in the second and third quarters of the
current year aggregating approximately $2.6 million and increased business
activity of EUA Cogenex Corporation (EUA Cogenex).
The Corporate Business Unit Net Earnings through September 30, 1994
compared to the same period in 1993 decreased by approximately $5.9 million due
primarily to the recognition through September 30, 1993 of approximately $4.5
million of investment tax credits related to the EUA Power Settlement Agreement
and approximately $1.8 million received in the third quarter of 1993
representing an insurance policy reimbursement for legal expenses incurred by
EUA during proceedings related to EUA Power Corporation. Offsetting this
decrease somewhat was the Parent Company's recovery of approximately $0.9
million in the first quarter of 1994 resulting from a settlement with the
Vermont Electric Generation and Transmission Cooperative, Inc. (Vermont Co-op)
relating to Seabrook Nuclear Project payments previously withheld by Vermont
Co-op and lower short-term borrowings.
Operating_Revenues
Operating Revenues for the third quarter of 1994 decreased by
approximately $2.6 million or 1.8% when compared to the same period of 1993 and
may be segmented by Business Unit operations as follows (000's):
Three Months Ended September 30,
Increase
1994 1993 (Decrease)
Core Electric Business $125,053 $129,470 $(4,417)
Energy Related Business 18,806 17,026 1,780
Corporate 0 0 0
Consolidated $143,859 $146,496 $(2,637)
======= ======= =======
Core Electric Business revenues for the third quarter of 1994 decreased by
approximately $4.4 million due primarily to a $7.7 million decrease in
recoveries of purchased power and fuel expenses, including the effect of
Montaup's rate reduction effective May 21, 1994. Partially offsetting this
combined decrease were base revenues increases of approximately $2.3 million
due to kWh sales growth of approximately 2.8% and an increase in recovery of
conservation and load management expenses and transmission rental revenue
aggregating $1.1 million.
EUA Cogenex revenues, which account for all of the Energy Related Business
Unit revenues, increased by approximately $1.8 million due to the acquisitions
of James L. Day Co. (Day Co.) and Northeast Energy Management, Inc. (NEM) in
December, 1993 and January, 1994, respectively.
Operating Revenues through September 30, 1994 increased by approximately
$11.9 million or 2.8% when compared to the same period of 1993. Operating
Revenues by Business Unit for the periods were as follows (000's):
Nine Months Ended September 30,
Increase
1994 1993 (Decrease)
Core Electric Business $376,756 $375,568 $ 1,188
Energy Related Business 54,569 43,873 10,696
Corporate 0 0 0
Consolidated $431,325 $419,441 $11,884
======== ======== ======
Core Electric Business revenues for the first nine months of 1994
increased by approximately $1.2 million due primarily to increased recoveries
of conservation and load management costs of approximately $2.9 million, an
increase in fuel cost recoveries of approximately $4.2 million, increased base
revenues of approximately $4.4 million by EUA's retail subsidiaries, as a
result of an approximately 2.6% increase in kWh sales and increased transmission
rental revenues of approximately $1.0 million. Partially offsetting these
increases was a decrease of approximately $11.3 million in recoveries of
purchased power expense which includes the impact of the Montaup rate reduction
mentioned above. (See Operations Expense, below.)
EUA Cogenex revenues increased by $10.7 million due primarily to the
recognition of additional energy savings project sales of approximately $4.5
million and to the acquisitions of Day Co. and NEM, as previously discussed.
KWH Sales
Total primary kWh sales of electricity by EUA's Core Electric Business
Unit increased by approximately 2.8% in the third quarter of 1994 and by
approximately 2.6% in the year-to-date 1994 period as compared to the same
periods last year. The 1994 sales performance is an indication of improving
economic conditions in EUA's service territory. Despite the strong performance
of kWh sales, the Company anticipates that the economic recovery will remain
slow for the foreseeable future.
Operations_Expense
Fuel expense of the Core Electric Business for the third quarter of 1994
did not significantly change. For the nine months ended September 30, 1994,
fuel expense increased from that of the same period in 1993 by approximately
$5.2 million or 8.0%. The increase is due primarily to increased generation by
company owned units in 1994 as a result of greater availability of such units
in 1994. Canal Unit 2, a 584 megawatt unit, which is 50% owned by EUA's
indirect subsidiary Montaup, began a scheduled outage on February 13, 1993 and
returned to service on April 5, 1993. Somerset Unit No. 6, a wholly-owned unit
of Montaup was out of service for essentially all of 1993 due to unanticipated
waterwall restoration. Operations of the Canal and Somerset units impacted the
year-to-date increase to fuel expense by approximately $2.1 million and
approximately $6.3 million, respectively. As a part of Montaup's current
application to the Federal Energy Regulatory Commission, implemented on May 21,
1994 and pending final adjudication and approval, Newport Electric Corporation
(Newport) is being billed as an all requirements customer of Montaup and
Montaup has assumed all of Newport's purchased power contracts. Consequently,
approximately $1.0 million of the increase in fuel expense relates to purchased
power-energy previously recorded as purchased power expense by Newport now
being reflected as fuel expense by Montaup. Partially offsetting the
year-to-date increases were decreases resulting from lower Seabrook generation
and lower purchases from other systems of approximately $1.7 million and $1.4
million, respectively.
Purchased Power expense for the third quarter and nine months ended
September 30, 1994 decreased approximately $1.9 million or 5.5% and
approximately $5.8 million or 5.6%, respectively. The periods' decreases may
be attributed to the following: (i) decreases of approximately $1.0 million in
both periods due to the recognition by Montaup of purchased power-energy
expenses as fuel expense (see above); (ii) lower amounts billed to Montaup and
Newport by suppliers of approximately $0.6 million and approximately $5.2
million, respectively; and (iii) decreased third quarter conservation and load
management (C&LM) expenses recorded as purchased power of approximately $0.2
million and increased year-to-date C&LM of approximately $0.5 million.
Other Operation and Maintenance expenses for the third quarter of 1994 did
not significantly change and for the nine months ended September 30, 1994
increased approximately $6.1 million or 4.7% from the same period in 1993. The
increase is due primarily to increased EUA Cogenex expenses of approximately
$5.4 million and due, in part, to its aforementioned business acquisitions.
Core Electric Business expenses for the period increased due primarily to
increased conservation and load management expenses of approximately $2.1
million which are fully recovered in rates.
Income Taxes
The EUA System's composite federal and state effective tax rate was
approximately 28.4% and 31.3%, respectively, for the quarter and nine months
ended September 30, 1994 compared to approximately 22.8% and 28.5%,
respectively, for the same periods in 1993. The periods' increases are due
primarily to a decrease in tax credits recognized in 1994 versus 1993. Tax
credits related to the EUA Power Settlement of approximately $2.0 million and
approximately $4.5 million, were recognized in the respective periods of 1993
while tax credits of approximately $1.3 million in both the second and third
quarters of 1994 were recognized by EUA Ocean State related to its partnership
investment in Ocean State Power Corporation. These 1994 amounts represent
approximately two-thirds of the total investment tax credits available to EUA
Ocean State and it is anticipated that a proportional amount will be recognized
in the fourth quarter of 1994.
Other_Income_and (Deductions) -_Net
Other Income and (Deductions) - Net increased approximately $1.1 million
or 20.7% and approximately $2.3 million or 16.4% in the current quarter and
year-to-date periods as compared to the corresponding periods of 1993. The
increases in both periods is a reflection of investment tax credits utilized by
EUA Ocean State in 1994 as previously discussed.
Interest_Charges
Interest on Long-Term Debt for the nine months ended 1994 decreased
approximately $2.3 million or 7.3% as compared to the same period of 1993. The
period's decrease is due primarily to Eastern Edison Company's (Eastern Edison)
refinancing activity in 1993 at substantially lower interest rates. The
refinancing by Newport of its Energy Facilities Revenue Bonds (See Liquidity
and Sources of Capital) also contributed to the periods' decrease. Offsetting
these decreases somewhat was additional interest incurred since the issuance in
October 1993 by EUA Cogenex of $50 million of Unsecured Notes at 7%. The third
quarter's interest on long-term debt did not change significantly from the
prior year period.
Preferred Dividends of Subsidiaries
Preferred Dividend requirements in the third quarter and nine months ended
September 30, 1994 decreased approximately $0.2 million or 27.7% and
approximately $0.9 million or 34.7%, respectively, as a result of Eastern
Edison's redemption of all of its outstanding 4.64%, 8.32%, 9.00% and 9.80%
series of Preferred Stock aggregating $41.6 million. Eastern Edison
subsequently issued $30 million of 6 5/8% series Preferred Stock.
Liquidity_and_Sources_of_Capital
The EUA system's need for permanent capital is primarily related to
investments in facilities required to meet the needs of its existing and future
customers.
Traditionally, cash construction requirements not met with internally
generated funds are financed through short-term borrowings which are ultimately
funded with permanent capital. At September 30, 1994, EUA System companies
maintained short-term lines of credit with various banks aggregating
approximately $140 million. Outstanding short-term Debt at September 30, 1994
and December 31, 1993 by Business Unit was as follows (000's):
September 30, 1994 December 31, 1993
Core Electric Business $ 0 $ 0
Energy Related Business 20,435 8,588
Corporate 11,146 28,580
Consolidated $31,581 $37,168
======= =======
For the nine months ended September 30, 1994 and 1993, internally
generated funds available after the payment of dividends amounted to
approximately $63.2 and $58.5 million, respectively, while the EUA System's
cash construction requirements amounted to approximately $34.5 million and
$56.1 million, respectively, for the same period. In addition to construction
expenditures, energy related investments of EUA Cogenex amounted to
approximately $8.6 million through September 30, 1994 which represents the
acquisition of NEM, now an EUA Cogenex subsidiary. Various laws, regulations
and contract provisions limit the use of EUA's internally generated funds such
that the funds generated by one subsidiary are not generally available to fund
the operations of another subsidiary.
On January 6, 1994 Newport issued $7.9 million of variable rate Electric
Energy Facilities Revenue refunding Bonds due 2011. With the proceeds, Newport
redeemed its 12% and 8.5% Series Energy Facilities Revenue Bonds aggregating
$7.9 million.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
On September 30, 1994, EUA Cogenex Corporation (EUA Cogenex) and Onsite
Energy Corporation (Onsite) entered into a Settlement Agreement (the Settlement
Agreement) which has been approved by the United States District Court for the
District of Massachusetts (the Massachusetts Federal District Court).
The Settlement Agreement settles the claims and counterclaims which EUA
Cogenex and Onsite had brought against each other in two lawsuits, one in the
Massachusetts Federal District Court and the other in the California Superior
Court for the County of San Diego.
Under the terms of the Settlement Agreement (1) Onsite relinquished its
interests in certain partnerships with EUA Cogenex and certain contractual
arrangements between Onsite and the partnerships were terminated; (2) EUA
Cogenex gave Onsite the option to purchase certain partnership projects; (3)
Onsite confirmed certain amounts which were owed to EUA Cogenex; and (4) EUA
Cogenex paid Onsite $800,000.
EUA Cogenex and Onsite have disagreed upon the implementation of certain
terms of the Settlement Agreement, including the provisions relating to the
options granted to Onsite and certain provisions relating to amounts owed to
EUA Cogenex, but EUA Cogenex and Onsite are currently seeking the assistance of
the Massachusetts Federal District Court in an effort to resolve their
disputes.
Item_6. Exhibits_and_Reports_on_Form_8-K
(a) Exhibits - None
(b) Reports on Form 8-K
- none filed in the quarter ended September 30, 1994
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Eastern_Utilities_Associates______
(Registrant)
Date: November_10,_1994 /s/_Richard_M._Burns_______________
Richard M. Burns, Comptroller
(on behalf of the Registrant and
as Chief Accounting Officer)