MEMORANDUM OF UNDERSTANDING
JOINT USE OF SPECIFIED LOCAL TRANSMISSION AND DISTRIBUTION FACILITIES
Memorandum of Understanding dated as of January 1, 1984 by and among The
Connecticut Light and Power Company, Holyoke Power and Electric Company, Holyoke
Water Power Company and Western Massachusetts Electric Company, each an
operating subsidiary of Northeast Utilities (the "Companies").
RECITALS
Certain of the Companies presently serve portions of their respective
local load areas by making joint use of particular local transmission and
distribution facilities with one or more of the other Companies under the terms
of the agreement listed in Exhibit A hereof.
The Companies have entered into a MEMORANDUM OF UNDERSTANDING regarding
POOLING OF GENERATION AND TRANSMISSION, dated as of June 1, 1970, whereby the
Companies have agreed to pool their generation and backbone transmission
facilities on a one-system basis. Said MEMORANDUM OF UNDERSTANDING superseded
portions of various agreements between the Companies pursuant to which certain
of the Companies had formerly made joint use of both backbone and local
transmission and distribution facilities.
The Companies have constructed and are operating local transmission and
distribution facilities on a joint basis, and intend to plan, construct and
operate additional facilities of this type with the objective of supplying the
electric requirements of their customers at the lowest practicable costs
consistent with proper standards of reliability.
The Companies have agreed that their respective joint uses of local
transmission and distribution facilities will be on the basis of coordinated
operations by the Companies and in accordance with good utility practice.
The Companies contemplate that their joint use of specified local
transmission and distribution facilities will be for relatively long periods of
time and should be made in accordance with consistent and uniform understandings
regarding sharing of resulting benefits and burdens.
The Companies intend, with the assistance of Northeast Utilities Service
Company, from time to time to review the adequacy of jointly used local
transmission and distribution facilities and appropriately adjust charges for
such use.
The Companies, with the assistance of Northeast Utilities Service Company,
further intend to coordinate and share the use of local transmission and
distribution facilities wherever practicable in order that such facilities will
have the least adverse effect on the environment.
In the light of these circumstances, therefore, the Companies have
concluded that a more comprehensive arrangement among them is necessary and
desirable to provide reasonable assurance of attaining the above objectives and
have decided to share the costs of specified local transmission and distribution
facilities commencing as of the effective date of the Agreement.
ACCORDINGLY, it is agreed that:
SECTION 1. DATES OF COMMENCEMENT, TERMINATION, ETC.
(a) Subject to the acceptance of this Memorandum as a rate filing by the
Federal Energy Regulatory Commission, this Memorandum shall be effective as of
January 1, 1984. The agreement listed in Exhibit A attached hereto shall be
terminated as of the effective date of this Agreement and relating to the
respective facility.
(b) This Memorandum shall continue in effect until amended or terminated
by mutual agreement or by order of public authority having jurisdiction.
SECTION 2. JOINT-USE FACILITIES
The Companies shall plan, construct, participate in and operate local
transmission and distribution facilities for joint use wherever practicable in
order to achieve the objectives recited above. Each such specified facility
shall be known as a Joint-Use Facility. The non-owner(s) of such Joint-Use
Facilities shall be known as the joint user(s).
SECTION 3. GENERAL PRINCIPLES OF JOINT USE
(a) Normally, the use of a Joint-Use Facility will be in order to
transmit electricity from one point, station or substation, to another location,
using one (or more) Company's local transmission and distribution facilities
which have sufficient load carrying capabilities to permit the efficient use of
a portion of such capacity by another Company, or such joint use may take the
form of utilizing substation and distribution facilities (either existing or
jointly planned) thereby making duplicate investments unnecessary. In some
instances, one Company may install new facilities for the initial sole use of
another Company.
(b) The owner of a Joint-Use Facility should be reimbursed by the joint
user(s) for an appropriate share of the owner's costs with respect thereto. The
components of costs to be considered in determining such amount to be paid to
the owner should include an adequate provision for investment return to the
owner and all operation and maintenance expense, depreciation expense and tax
expense borne by the owner with respect to the Joint-Use Facility.
(c) The Companies agree that it is generally reasonable to determine the
amount to be paid by one Company for the use of another's local transmission and
distribution facilities by allocating the costs with respect to such facilities
between the owner and joint user(s) in proportion to the respective relative
loads supplied therefrom. It is recognized, however, that in many
circumstances, allocation of costs based on factors other than, or in addition
to, the actual load supplied may result in a more equitable sharing of costs.
(d) It is expected that the joint use of certain facilities will continue
for many years. Therefore, the load carrying capabilities (existing and
potential) of particular facilities and the forecasted use by each Company of
such facilities should be considered in making decisions with respect to joint
use.
(e) If, in the opinion of the owning Company, the total load carrying
capability of a Joint-Use Facility may became inadequate for its own needs
together with the joint use of another Company, the facilities required for the
purposes of the owning Company and those required to continue to adequately
serve the particular local area load of the joint user(s), and the extent, if
any, of continued joint use of such facilities shall be determined by mutual
agreement.
(f) The extent of joint use of facilities, the amounts to be paid for
such use, and the method of determining such amounts shall be reviewed
periodically and changed by mutual agreement to the extent appropriate.
(g) Each Company shall be solely responsible for providing all
electricity required to supply its own loads including all capacity and energy
losses incidental to the transmission, transformation and distribution of such
electricity incurred on any Joint-Use Facility owned by another Company.
(h) Metering of electricity provided by one Company and transmitted and
distributed on transmission and distribution facilities of another Company shall
be done in such manner and at such places as may be mutually agreed from time to
time. For accounting purposes, segregation shall be made of such electricity
from other electricity flowing on and between the systems of the Companies.
SECTION 4. SHARING COSTS OF JOINT-USE FACILITIES
(a) The Companies shall share the costs of Joint-Use Facilities on the
basis of the relation of their respective uses of each such facility. For the
purposes of this Memorandum, the method of determination of the respective uses
of each Joint-Use Facility will be specified in Appendix I attached hereto.
(b) Costs of each such Joint-Use Facility for any month shall be those
costs associated with the Operation and Maintenance Expense, Depreciation
Expense, Property Tax Expense, Leasing Expense, Investment Return, Income Tax
Expense and Other Tax Expense with respect to each such facility for each month
of joint use.
(c) Northeast Utilities Service Company shall act as accounting and
billing agent for the Companies under this Memorandum. Bills shall be rendered
monthly on a net basis and may be based on estimates subject to subsequent
correction to actual.
SECTION 5. DEFINITIONS
As used in this Memorandum and all Attachments, Exhibits and Appendices
hereto, the following terms shall have the following respective meanings:
(a) The term Accumulated Depreciation means an amount equal to the
accrued Depreciation Expense minus the original cost of retirements and the cost
of removal plus any salvage with respect thereto.
(b) The term Billing Peak Load means the maximum load supplied by a
Company on a Joint-Use Facility during any clock hour during the preceding
sixteen (16) calendar months. The Billing Peak load may be adjusted by mutual
agreement to reflect transfer of load from one Joint-Use Facility to another or
otherwise, provided that such transfer shall be part of a mutually agreed upon
system change or coordinated operation among the Companies.
(c) The term Depreciable Investment, as applied to any Joint-Use Facility
means the part of the Investment in such Joint-Use Facility which is depreciable
in accordance with the provisions of the Uniform System of Accounts prescribed
by the Federal Energy Regulatory Commission.
(d) The term Investment as applied to any Joint-Use Facility means the
original cost thereof as shown on the books of the owner in accordance with the
Uniform System of Accounts prescribed by the Federal Energy Regulatory
Commission at the applicable time (reflecting the cost of any betterments,
improvements and additions thereto and the cost of any retirements therefrom ).
(e) The term Joint-Use Facilities and/or Local Facilities as used herein
means any facility included in Utility Plant (including, but not limited to,
station structures and improvements, station equipment, overhead and underground
lines, land and land rights) which by mutual agreement is used by a joint
user(s) to supply its local loads and is described in an attachment to Appendix
I attached hereto.
References in this Section to mutual agreement relate to the agreement
between the owner of the Joint-Use Facility and the one or more joint users
participating in or directly affected by the joint use of the Joint-Use Facility
which agreement is to be included as part of the appropriate attachment to
Appendix I attached hereto relating to each specified Joint-Use Facility.
SECTION 6. REIMBURSEMENT OF CERTAIN TAXES
If at any time, any of the Companies is required by any state or local
governmental authority to pay a gross revenue or other similar tax with respect
to payments made to it under this Memorandum by any other Company, the Company
paying the tax must be promptly reimbursed by the joint user(s) for such amount
of the tax.
SECTION 7. LIABILITY
(a) As among the Companies, each Company will indemnify and save the
others harmless from and against all costs and damages by reason of bodily
injury, death or damage to the property of third persons caused by or sustained
on facilities owned by it, except that each Company shall be solely responsible
and shall bear all costs of claims by its own employees growing out of any
workmen's compensation law.
(b) The Companies agree that they shall endeavor to operate and maintain
the irrespective facilities involved in this Memorandum in accordance with good
utility practice, but none of the Companies guarantees an uninterrupted transfer
of electricity on its facilities, and each Company hereby waives all claims
against any other Company for damages of any kind resulting from any stoppage,
interruption, increase, diminution or variation in service whether resulting
from the negligence of another Company otherwise.
SECTION 8. TREATMENT OF HOLYOKE COMPANIES
Holyoke Water Power Company and Holyoke Power and Electric Company shall
constitute a single party for all purposes of Sections 3 and 4 of this
Memorandum.
SECTION 9. TERMINATION
(a) Upon termination of this Memorandum or the retirement of one or more
of the jointly uses local facilities or upon a significant decrease in the use
of the facilities specified in one or more of the attachments to Appendix I
attached hereto, the Companies shall determine by mutual agreement such
appropriate adjustments and provisions as may be necessary to provide for
reasonable reimbursement to each owning Company for and with respect to such
portions of the facilities constructed to effectuate the purposes of this
Memorandum but which are not required by the owning Company in connection with
its own operations after such termination or decrease.
(b) Notwithstanding the termination of this Memorandum or the retirement
of one or more of the facilities list in the attachments to Appendix I attached
hereto, the applicable provisions shall continue in effect after such
termination to the extent necessary to provide for adjustments and provisions
under this Section and for final billing and other adjustments.
SECTION 10. ARBITRATION
In the event of any dispute between any of Companies or failure of any of
the Companies to agree as to any matter to be determined by mutual agreement
under the provisions of this Memorandum or as to the interpretation of or
operation under any provision of this Memorandum upon notice from any Company,
such dispute shall be submitted to arbitration. If agreement is not reached
regarding appointment of an arbitrator within 30 days after the notice of
submission to arbitration is given by a Company, any affected Company may apply
to the American Arbitration Association for appointment of the arbitrator. The
arbitrator shall be a disinterested person who is qualified in the area of the
matter in dispute. The arbitrator shall conduct the proceeding in accordance
with and subject to the rules of the American Arbitration Association and shall
render his decision with respect to the matter in controversy as promptly as
practicable. The arbitrator shall be authorized only to interpret and apply the
provisions of this Memorandum, and he shall have no power to modify or change
this Memorandum in any manner. The decision of the arbitrator shall be final
and binding on the Companies. Each of the Companies in any arbitration
proceeding shall bear its own expenses, and the expenses and fees of the
arbitrator and any other expenses arising from the arbitration proceeding shall
be shared equally by the Companies participating in the arbitration.
SECTION 11. MISCELLANEOUS
(a) This Memorandum shall be binding upon and shall inure to the benefit
of the Companies and their respective successors and assigns.
(b) This Memorandum including all Appendices, Exhibits and Attachments is
subject to present and future state or federal statutes and to present or future
regulations or orders properly issued by any regulatory agencies having
jurisdiction over matters contained herein.
SECTION 12. APPLICABLE LAW
This Memorandum shall be interpreted, performed and controlled by and in
accordance with the laws of the state of Connecticut.
THE CONNECTICUT LIGHT AND POWER COMPANY
By /s/ Frank P. Sabatino
Its Vice President
WESTERN MASSACHUSETTS ELECTRIC COMPANY
By /s/ Frank P. Sabatino
Its
HOLYOKE WATER POWER COMPANY
By /s/ Frank P. Sabatino
Its
HOLYOKE POWER AND ELECTRIC COMPANY
By /s/ Frank P. Sabatino
Its
EXHIBIT A
The following agreement is to be terminated as of the effective date of
this Agreement and relating to the specific facility:
1. Agreement between The Hartford Electric Light Company and Western
Massachusetts Electric Company relating to the Southwick Substation (MWME FPC
Rate Schedule 13).
Appendix I
Local Facilities Agreement
The annual costs of the Local Facilities shall be the estimated annual costs of
owning, operating, maintaining, and supporting those facilities, including
applicable leasing costs. These costs shall be computed
annually. In determining such costs, the provisions of the Uniform System of
Accounts prescribed by the Federal Energy Regulatory Commission for major
electric utilities and licensees shall be controlling, to the extent applicable.
I. Determination of Investment Base
The Investment Base is the sum of Net Investment and Working Capital as
determined at the end of the preceding calendar year unless there is a
substantial change (of $500,000 or more) in the Investment Base during the
calendar year.
A. Net Investment
Net investment shall be the original cost (including the cost of any
betterments, improvements, and additions thereto and excluding the cost of any
retirements therefrom) of the Local Facility, as reflected on the Owner's books
of account, less the sum of (1) accumulated depreciation and (2) accumulated
deferred federal and state income taxes arising from liberalized depreciation
and accelerated amortization. Accumulated depreciation shall reflect retirements
and net salvage realized. Accumulated deferred income taxes shall be computed
using the same life, methods, rates, salvage factors, and accounting practices
as reflected on the Owner's books of account, and shall be applicable to
investments made in such facilities on or subsequent to the effective date of
this Agreement.
In the event that the Owner has employed a liberalized tax
depreciation or accelerated depreciation method and thereafter employs a
different method, any necessary allowance or adjustment shall be made in order
to insure that any such change of methods does not result in any overcollection
or undercollection by the Owner.
B. Working Capital
Working capital to be included in the Investment Base shall include
45 days (out of 360) of related operation and maintenance expense and the
Owner's best estimate of the cost of related materials and supplies and an
appropriate allowance for any payments made pursuant to the prepayment
provisions applicable leases.
II. Determination of Annual Carrying Costs of Local Facilities
The following cost factors shall be used in determining the annual
carrying costs of the Local Facilities:
A. Operation and Maintenance Expense
B. Property Tax Expense
C. Depreciation Expense
D. Investment Return
E. Income Tax Expense
F. Investment Tax Credit Allowance
G. Leasing Expense
H. Other Tax Expense
A. Operation and Maintenance Expense
Operation and maintenance expense means an amount equal to the sum of
the following: (1) the actual cost (or the best estimate thereof) of the annual
expense of operating and maintaining the Local Facility; (2) an appropriate
allowance to cover the related administrative and general expenses, including,
but not limited to, employee pensions and benefits, federal and state taxes
related to the direct payroll expense,
and property insurance expense for the Local Facility. The allowance for the
administrative and general expenses is initially estimated at 40 percent of the
operation and maintenance expense provided in (1) above. This allowance shall be
subject to periodic review, and shall be revised, when and to the extent deemed
appropriate by the Owner, in accordance with the results of any such review.
B. Property Tax Expense
Property tax expense shall consist of those taxes or excise payments
that are based upon the assessed value of the Local Facility, and specifically
identified with that facility, or the Owner's best estimate thereof. The
procedures for determining the amounts of any such estimates shall be determined
by the Owner. The Owner shall have the sole discretion in any negotiations with
taxing authorities.
C. Depreciation Expense
Depreciation expense shall be determined on the same basis as
recorded on the Owner's books of account.
D. Investment Return
Investment return for the Local Facility shall be determined by
multiplying the Owner's investment base by the Owner's composite cost of
capital. The Owner's composite cost of capital shall be computed on the basis of
its cost, expressed in percentages, for (1) bonds and other long-term
indebtedness, (2) preferred stock, and (3) for the return on common equity as
granted in its most recent rate order from the regulatory authority having
principal jurisdiction over the Owner's rates. These costs shall be combined in
accordance with the following formula to determine the Owner's composite cost of
capital:
Composite Cost of Capital = Ax8 + CxD + ExF in which:
A - the Owner's cost for long-term indebtedness
B - the percentage of the Owner's capitalization represented by long-term
indebtedness
C - the Owner's cost for preferred stock
D - the percentage of the Owner's capitalization represented by preferred
stock
E - the Owner's return on common equity
F - the percentage of the Owner's capitalization represented by common
equity
In the above formula, the Owner's capitalization consists of its components of
long-term indebtedness, preferred stock, and common equity. Those components and
the percentage of capitalization represented by each of those components shall
be rounded off to the nearest whole number.
The Owner's cost of long-term indebtedness in the above formula is the weighted
average of the costs of its various issues of long-term indebtedness. The cost
of an issue of long-term indebtedness shall be computed in accordance with the
following formula:
Cost of Issue in Percent =
(Dividend Rate (%) x Aggregate Par or Stated Value) /
(Proceeds to Company from Underwriter or Investor less Company Expenses of
Issue)
The Owner's investment return for a year shall be computed initially at the
beginning of the year on the basis of its investment base and its composite cost
of capital as of the beginning of the year. The investment return, as so
computed, shall be recomputed each time that a substantial change in its
Investment Base or composite cost of capital occurs during the year, and at any
such other time as the Companies mutually agree is appropriate.
E. Income Tax Expense
An allowance for income taxes shall be computed in accordance with
the following formula:
(Te / 1-Te) x [(IB (PE + CE)) + (DB - DT)]
Te - the effective combined federal and state statutory income tax
rate of the Owner
IB - Investment Base
PE - Weighted Preferred Stock Component (C x D in II.D.)
CE - Weighted Common Equity Component (E x F in II.D.)
DB - Book depreciation
DT - Tax depreciation
Where the book depreciation (DB) and tax depreciation (DT) apply only
to investments made in the Local Facility prior to the effective date of this
Agreement.
F. Investment Tax Credit Allowance
Applicable investment tax credits are those based upon the Owner's
applicable investments placed in service on or subsequent to the effective date
of this Agreement.
An allowance for any applicable investment tax credit shall be
reflected ratably over the remaining book depreciable life of the Local
Facility. This allowance for the normalized investment tax credit shall be
calculated by dividing the investment tax credit by the estimated remaining book
depreciable life, by one minus the effective tax rate, as described below:
IC / (1-Td)N
IC - the applicable investment tax credit
Te - as previously defined
N - remaining book depreciable life of the Local Facility expressed
in years
G. Leasing Expense
Leasing expense shall consist of those leasing costs (or rental
payments) charged to the Owner and related to the Local Facility.
H. Other Tax Expense
Other tax expense shall consist of any taxes or excises which are
incurred in the future as a result of constructing, owning, operating, or
leasing the Local Facility. Such tax expense shall include any tax, on gross
revenues or any tax pertaining to the billing of those annual costs, which is
not recognized elsewhere in this Agreement.
III. Allocation of Annual Carrying Costs of NU Local Facilities
The Annual Carrying Costs listed above (II.A. through II.E.) shall be
allocated to the Participants as follows:
A. Transmission Facilities
Jointly used transmission facilities shall be allocated in accordance
with the provisions of the NUG&T Agreement.
B. Substation Facilities
One-half of the cost of such jointly used substation facilities shall
be allocated in accordance with the provisions of the NUG&T Agreement and the
remainder of such costs shall be allocated on the basis of the number of feeder
positions assigned. Spare (unloaded) feeder positions shall be included in this
allocation. When one party's feeder is tapped in the field, this allocation will
still reflect the number of feeder positions assigned to each party.
C. Distribution Facilities
1. Duct Lines - Shall be allocated on the basis of the number of
ducts actually utilized by each party. Spare ducts shall be included in this
allocation.
2. Feeders - When one party's feeder is tapped in the field, the
costs of the jointly used portion shall be allocated on an equal basis between
the parties.
ATTACHMENT 1
January 6, 1993
TO: H. C. Walmsley
FROM: B. K. Morton (x5369)
SUBJECT: NU Local Facilities Adjustment
Below are the adjustments to the December 1992 NU Local Facilities billings:
Chicopee Franconia Silver St Southwick Trans.
S/S S/S S/S S/S Distrib.
HWP=User CL&P=User CL&P=User CL&P=User CL&P=User
Total User Carrying Charge $ 0 $78,285 $24,165 $47,096 $18,041
Less: Amount Billed
Jan-Nov 1992 369,600 67,100 20,900 79,200 14,300
Less: Adjustment for
Nov & Dec 1991 67,169
Adjustment Due To/
(Reimbursed By) WMECO ($436,769) $11,185 $3,265 ($32,104) $3,741
Detailed below are the 1993 monthly billings for NU Local Facilities.
Monthly Billing To Be
Collected Jan-Nov $ 0 $6,500 $2,000 $3,900 $1,500
We will provide you with the December adjustment to actual carrying cost in
January of 1994.
Please contact me if you have any questions.
bkm/bm
cc: R. A. Baumann
J. M. Geruch
J. J. Roman
NORTHEAST UTILITIES
LOCAL FACILITIES
FRANCONIA SUBSTATION
1992 CHARGES
SOLE USE SOLE USE
JOINT USE NON-OWNER (CL&P) OWNER (WMECO)
INVESTMENT BASE:
NON-DEPRECIABLE
LAND $37,660 5,380 10,760
ALLOW FOR WKNG CAP:
MAT. & SUPPLIES 11,475 221 1,367
WKNG CAP ALLOW 20,621 465 3,043
TOTAL ALLOWANCE 32,096 686 4,410
TOTAL NON-DEPRECIABLE 69,756 6,066 15,170
DEPRECIABLE INVESTMENT 1,311,950 25,231 156,312
ACCUMULATED DEPRECIATION (595,088) (19,918) (66,865)
ACCUM DEFERRED INC TAXES (21,582) 0 (1,133)
NET INVESTMENT $765,036 11,379 103,484
ANNUAL CARRYING CHARGES:
OPER. AND MAINT. EXPENSE $112,265 2,328 14,427
ADMIN. & GEN. EXPENSE 44,906 931 5,771
LEASING EXPENSE 31,192 1,843 16,591
DEPRECIATION EXPENSE 25,580 487 3,017
PROPERTY TAX EXPENSE 13,328 302 1,650
INVESTMENT RETURN 72,143 1,073 9,758
INCOME TAX EXPENSE 23,537 329 3,224
INVESTMENT TAX CREDIT (114) 0 0
OTHER TAX EXPENSE 0 0 0
TOTAL CARRYING CHARGES $322,837 7,293 54,438
ALLOCATED % TO NON-OWNER 21.99% 100.00%
CARRYING CHARGE ALLOCATION $70,992 7,293
TOTAL CARRYING CHARGE
TO NON-OWNER (CL&P) 78,285
NORTHEAST UTILITIES
LOCAL FACILITIES
SILVER ST SUBSTATION
1992 CHARGES
SOLE USE SOLE USE
JOINT USE NON-OWNER (CL&P) OWNER (WMECO)
INVESTMENT BASE:
NON-DEPRECIABLE
LAND $ 0 N/A 0
ALLOW FOR WKNG CAP:
MAT. & SUPPLIES 8,135 N/A 1,648
WKNG CAP ALLOW 14,642 N/A 3,018
TOTAL ALLOWANCE 22,777 N/A 4,666
TOTAL NON-DEPRECIABLE 22,777 N/A 4,666
DEPRECIABLE INVESTMENT 930,072 N/A 188,428
ACCUMULATED DEPRECIATION (379,849) N/A (113,096)
ACCUM DEFERRED INC TAXES (33,735) N/A (1,092)
NET INVESTMENT $539,265 N/A 78,906
ANNUAL CARRYING CHARGES:
OPER. AND MAINT. EXPENSE $83,668 N/A 17,248
ADMIN. & GEN. EXPENSE 33,467 N/A 6,899
DEPRECIATION EXPENSE 18,138 N/A 3,639
PROPERTY TAX EXPENSE 11,962 N/A 2,423
INVESTMENT RETURN 50,853 N/A 7,441
INCOME TAX EXPENSE 17,118 N/A 2,293
INVESTMENT TAX CREDIT (26) N/A 0
OTHER TAX EXPENSE 0 N/A 0
TOTAL CARRYING CHARGES $215,180 N/A 39,943
ALLOCATED % TO NON-OWNER 11.23%
CARRYING CHARGE ALLOCATION
TO NON-OWNER (CL&P) $24,165
NORTHEAST UTILITIES
LOCAL FACILITIES
SOUTHWICK SUBSTATION
1992 CHARGES
SOLE USE SOLE USE
JOINT USE NON-OWNER (CL&P) OWNER (WMECO)
INVESTMENT BASE:
NON-DEPRECIABLE
LAND $8,355 0 440
ALLOW FOR WKNG CAP:
MAT. & SUPPLIES 8,208 0 264
WKNG CAP ALLOW 14,685 0 477
TOTAL ALLOWANCE 22,893 0 741
TOTAL NON-DEPRECIABLE 31,248 0 1,181
DEPRECIABLE INVESTMENT 938,352 0 30,143
ACCUMULATED DEPRECIATION (574,715) 0 (21,113)
ACCUM DEFERRED INC TAXES (14,552) 0 (524)
NET INVESTMENT $380,333 0 9,687
ANNUAL CARRYING CHARGES:
OPER. AND MAINT. EXPENSE 83,914 0 2,727
ADMIN. & GEN. EXPENSE 33,566 0 1,091
DEPRECIATION EXPENSE 18,254 0 583
PROPERTY TAX EXPENSE 8,633 0 279
INVESTMENT RETURN 35,865 0 914
INCOME TAX EXPENSE 11,227 0 272
INVESTMENT TAX CREDIT (90) 0 (22)
OTHER TAX EXPENSE 0 0 0
TOTAL CARRYING CHARGES $191,369 0 5,844
ALLOCATED % TO NON-OWNER 24.61% 0.00%
CARRYING CHARGE ALLOCATION $47,096 0
TOTAL CARRYING CHARGE
TO NON-OWNER (CL&P) $47,096
NORTHEAST UTILITIES
LOCAL FACILITIES
FRANCONIA DISTRIBUTION
1992 CHARGES
WMECO
INVESTMENT BASE:
NON-DEPRECIABLE
LAND $ 0
ALLOW FOR WKNG CAP:
MAT. & SUPPLIES 1,656
WKNG CAP ALLOW 1,195
TOTAL ALLOWANCE 2,851
TOTAL NON-DEPRECIABLE 2,851
DEPRECIABLE INVESTMENT 189,271
ACCUMULATED DEPRECIATION (97,944)
ACCUM DEFERRED INC TAXES 0
NET INVESTMENT $ 94,178
ANNUAL CARRYING CHARGES:
OPER. AND MAINT. EXPENSE $ 6,827
ADMIN. & GEN. EXPENSE 2,731
DEPRECIATION EXPENSE 3,785
PROPERTY TAX EXPENSE 2,421
INVESTMENT RETURN 8,881
INCOME TAX EXPENSE 3,061
INVESTMENT TAX CREDIT 0
OTHER TAX EXPENSE 0
TOTAL CARRYING CHARGES $ 27,706
ADJUSTMENT PERCENTAGE 0.1875
CL&P OWES TO WMECO $ 5,195
NORTHEAST UTILITIES
LOCAL FACILITIES
FRANCONIA DISTRIBUTION
1992 CHARGES
CL&P
INVESTMENT BASE:
NON-DEPRECIABLE
LAND $ 0
ALLOW FOR WKNG CAP:
MAT. & SUPPLIES 807
WKNG CAP ALLOW 583
TOTAL ALLOWANCE 1,390
TOTAL NON-DEPRECIABLE 1,390
DEPRECIABLE INVESTMENT 92,225
ACCUMULATED DEPRECIATION (46,380)
ACCUM DEFERRED INC TAXES 0
NET INVESTMENT $ 47,235
ANNUAL CARRYING CHARGES:
OPER. AND MAINT. EXPENSE $ 3,333
ADMIN. & GEN. EXPENSE 1,333
DEPRECIATION EXPENSE 3,042
PROPERTY TAX EXPENSE 1,180
INVESTMENT RETURN 4,454
INCOME TAX EXPENSE 1,618
INVESTMENT TAX CREDIT 0
OTHER TAX EXPENSE 0
TOTAL CARRYING CHARGES $ 14,960
ADJUSTMENT PERCENTAGE 0.5000
CL&P OWES TO WMECO $ 7,480
NORTHEAST UTILITIES
LOCAL FACILITIES
SILVER STREET DISTRIBUTION
1992 CHARGES
COMMON
INVESTMENT BASE:
NON-DEPRECIABLE
LAND $ 0
ALLOW FOR WKNG CAP:
MAT. & SUPPLIES 1,865
WKNG CAP ALLOW 1,348
TOTAL ALLOWANCE 3,213
TOTAL NON-DEPRECIABLE 3,213
DEPRECIABLE INVESTMENT 213,187
ACCUMULATED DEPRECIATION (21,019)
ACCUM DEFERRED INC TAXES 0
NET INVESTMENT $195,381
ANNUAL CARRYING CHARGES:
OPER. AND MAINT. EXPENSE $ 7,702
ADMIN. & GEN. EXPENSE 3,081
DEPRECIATION EXPENSE 4,100
PROPERTY TAX EXPENSE 2,727
INVESTMENT RETURN 18,424
INCOME TAX EXPENSE 6,485
INVESTMENT TAX CREDIT (39)
OTHER TAX EXPENSE 0
TOTAL CARRYING CHARGES $ 42,480
ADJUSTMENT PERCENTAGE 0.0833
CL&P OWES TO WMECO $ 3,539
NORTHEAST UTILITIES
LOCAL FACILITIES
SOUTHWICK DISTRIBUTION
1992 CHARGES
COMMON
INVESTMENT BASE:
NON-DEPRECIABLE
LAND $ 0
ALLOW FOR WKNG CAP:
MAT. & SUPPLIES 489
WKNG CAP ALLOW 353
TOTAL ALLOWANCE 842
TOTAL NON-DEPRECIABLE 842
DEPRECIABLE INVESTMENT 55,908
ACCUMULATED DEPRECIATION (6,357)
ACCUM DEFERRED INC TAXES 0
NET INVESTMENT $ 50,393
ANNUAL CARRYING CHARGES:
OPER. AND MAINT. EXPENSE $ 2,018
ADMIN. & GEN. EXPENSE 807
DEPRECIATION EXPENSE 1,085
PROPERTY TAX EXPENSE 715
INVESTMENT RETURN 4,752
INCOME TAX EXPENSE 1,595
INVESTMENT TAX CREDIT (14)
OTHER TAX EXPENSE 0
TOTAL CARRYING CHARGES $ 10,958
ADJUSTMENT PERCENTAGE 0.1667
CL&P OWES TO WMECO $ 1,827
NOT EFFECTIVE AS OF NOVEMBER 1, 1991
EXHIBIT 1 TO APPENDIX I
LOCAL FACILITIES
CHICOPEE SUBSTATION
1984 CHARGES
SOLE USE SOLE USE
JOINT USE NON-OWNER (HWP) OWNER (WMECO)
INVESTMENT BASE:
NON-DEPRECIABLE
LAND $ 3,295 1,098 1,098
ALLOW FOR WKNG CAP:
MAT. & SUPPLIES 12,297 2,390 1,378
WKNG CAP ALLOW 12,429 2,584 1,503
TOTAL ALLOWANCE 24,726 4,974 2,881
TOTAL NON-DEPRECIABLE 28,021 6,072 3,979
DEPRECIABLE INVESTMENT 1,218,604 236,837 136,537
ACCUMULATED DEPRECIATION (508,492) (66,191) (39,641)
ACCUM DEFERRED INC TAXES 0 0 0
NET INVESTMENT $ 738,133 176,718 100,875
ANNUAL CARRYING CHARGES:
OPER. AND MAINT. EXPENSE $ 71,023 14,764 8,589
ADMIN. & GEN. EXPENSE 28,409 5,906 3,436
DEPRECIATION EXPENSE 39,447 7,759 4,481
PROPERTY TAX EXPENSE 22,825 4,445 2,571
INVESTMENT RETURN 88,945 21,295 12,155
INCOME TAX EXPENSE 54,991 13,119 7,501
INVESTMENT TAX CREDIT (2,287) (559) (311)
OTHER TAX EXPENSE 0 0 0
TOTAL CARRYING CHARGES $ 303,353 66,730 38,422
ALLOCATED % TO NON-OWNER * 81.28% 100.00%
CARRYING CHARGE ALLOCATION 246,565 66,730
TOTAL CARRYING CHARGE
TO NON-OWNER (HWP) 313,295
* SEE PAGE 3 OF EXHIBIT 1 TO APPENDIX I
NOT EFFECTIVE AS OF NOVEMBER 1, 1991
EXHIBIT 1 TO APPENDIX I
LOCAL FACILITIES
CHICOPEE SUBSTATION
1984 INVESTMENTS
SOLE USE SOLE USE
ITEM JOINT USE NON-OWNER (HWP) OWNER (WMECO)
TOTAL STATION LAND INVEST. $ 3,295 1,098 1,098
"PTF" LAND INVEST. 0 0 0
"NUG&T" LAND INVEST. 0 0 0
LOCAL FACIL. LAND INVEST. $ 3,295 1,098 1,098
TOTAL STATION DEPR. INVEST. $ 1,218,604 236,837 136,537
"PTF" DEPRECIABLE INVEST. 0 0 0
"NUG&T" DEPRECIABLE INVEST. 0 0 0
LOCAL FACIL. DEPR. INVEST. $ 1,218,604 236,837 136,537
LOCAL FACIL. TOTAL INVEST. $ 1,221,899 237,935 137,635
NOT EFFECTIVE AS OF NOVEMBER 1, 1991
EXHIBIT 1 TO APPENDIX I
LOCAL FACILITIES
CHICOPEE SUBSTATION
1984 ALLOCATORS
LOAD PERCENTAGES:
NON-OWNER PEAK (HWP) 238.2 MW
OWNER PEAX (WMECO) 10.2 MW
TOTAL OF PEAK LOADS 248.4 MW
NON-OWNER PERCENTAGE 95.89%
50% OF TOTAL ALLOCATOR X .5
NET LOAD ALLOCATOR 47.95%
FEEDER POSITIONS:
NON-OWNER FEEDERS (HWP) 8.0
OWNER FEEDERS (WMECO) 4.0
TOTAL OF FEEDER POSITIONS 12.0
NON-OWNER PERCENTAGE 66.67%
50% OF TOTAL ALLOCATOR X .5
NET LOAD ALLOCATOR 33.33%
TOTAL NON-OWNER ALLOCATOR (HWP) 81.28%
ALLOCATED PER APPENDIX I SECTION III
EXHIBIT 1 TO APPENDIX I
LOCAL FACILITIES
FRANCONIA SUBSTATION
1984 CHARGES
SOLE USE SOLE USE
JOINT USE NON-OWNER (CL&P) OWNER (WMECO)
INVESTMENT BASE:
NON-DEPRECIABLE
LAND $ 37,660 5,380 10,760
ALLOW FOR WKNG CAP:
MAT. & SUPPLIES 10,274 383 1,288
WKNG CAP ALLOW 11,579 613 1,953
TOTAL ALLOWANCE 21,853 996 3,241
TOTAL NON-DEPRECIABLE 59,513 6,376 14,001
DEPRECIABLE INVESTMENT 1,018,179 37,932 127,635
ACCUMULATED DEPRECIATION (303,273) (10,426) (37,407)
ACCUM DEFERRED INC TAXES 0 0 0
NET INVESTMENT $ 774,419 33,882 104,229
ANNUAL CARRYING CHARGES:
OPER. AND MAINT. EXPENSE $ 60,937 2,526 8,501
ADMIN. & GEN. EXPENSE 24,375 1,010 3,400
LEASING EXPENSE 29,280 5,459 14,888
DEPRECIATION EXPENSE 33,094 1,259 4,237
PROPERTY TAX EXPENSE 15,688 644 2,056
INVESTMENT RETURN 93,317 4,083 12,560
INCOME TAX EXPENSE 57,181 22,510 7,758
INVESTMENT TAX CREDIT (2,721) (124) (343)
OTHER TAX EXPENSE 0 0 0
TOTAL CARRYING CHARGES $ 311,151 17,367 53,057
ALLOCATED % TO NON-OWNER * 24.91% 100.00%
CARRYING CHARGE ALLOCATION 77,508 17,367
TOTAL CARRYING CHARGE
TO NON-OWNER (HWP) 94,875
* SEE PAGE 7 OF EXHIBIT 1 TO APPENDIX I
EXHIBIT 1 TO APPENDIX I
LOCAL FACILITIES
FRANCONIA SUBSTATION
1984 INVESTMENTS
SOLE USE SOLE USE
ITEM JOINT USE NON-OWNER (CL&P) OWNER (WMECO)
TOTAL STATION LAND INVEST. $ 37,660 5,380 10,760
"PTF" LAND INVEST. 0 0 0
"NUG&T" LAND INVEST. 0 0 0
LOCAL FACIL. LAND INVEST. $ 37,660 5,380 10,760
TOTAL STATION DEPR. INVEST. $ 1,018,179 37,932 127,635
"PTF" DEPRECIABLE INVEST. 0 0 0
"NUG&T" DEPRECIABLE INVEST. 0 0 0
LOCAL FACIL. DEPR. INVEST. $ 1,018,179 37,932 127,635
LOCAL FACIL. TOTAL INVEST. $ 1,055,839 43,312 138,395
EXHIBIT 1 TO APPENDIX I
LOCAL FACILITIES
FRANCONIA SUBSTATION
1984 ALLOCATORS
LOAD PERCENTAGES:
NON-OWNER PEAK (CL&P) 85.8 MW
OWNER PEAX (WMECO) 259.8 MW
TOTAL OF PEAK LOADS 345.6 MW
NON-OWNER PERCENTAGE 24.83%
50% OF TOTAL ALLOCATOR X .5
NET LOAD ALLOCATOR 12.41%
FEEDER POSITIONS:
NON-OWNER FEEDERS (CL&P) 2.0
OWNER FEEDERS (WMECO) 6.0
TOTAL OF FEEDER POSITIONS 8.0
NON-OWNER PERCENTAGE 25.00%
50% OF TOTAL ALLOCATOR X .5
NET LOAD ALLOCATOR 12.50%
TOTAL NON-OWNER ALLOCATOR (CL&P) 24.91%
ALLOCATED PER APPENDIX I SECTION III
EXHIBIT 1 TO APPENDIX I
LOCAL FACILITIES
SILVER ST. SUBSTATION
1984 CHARGES
SOLE USE SOLE USE
JOINT USE NON-OWNER (CL&P) OWNER (WMECO)
INVESTMENT BASE:
NON-DEPRECIABLE
LAND $ 0 N/A 0
ALLOW FOR WKNG CAP:
MAT. & SUPPLIES 5,884 N/A 1,973
WKNG CAP ALLOW 6,592 N/A 2,258
TOTAL ALLOWANCE 12,476 N/A 4,231
TOTAL NON-DEPRECIABLE 12,476 N/A 4,231
DEPRECIABLE INVESTMENT 583,085 N/A 195,535
ACCUMULATED DEPRECIATION (194,276) N/A (65,328)
ACCUM DEFERRED INC TAXES 0 N/A 0
NET INVESTMENT $ 401,285 N/A 134,438
ANNUAL CARRYING CHARGES:
OPER. AND MAINT. EXPENSE $ 37,670 N/A 12,903
ADMIN. & GEN. EXPENSE 15,068 N/A 5,161
DEPRECIATION EXPENSE 19,239 N/A 6,480
PROPERTY TAX EXPENSE 8,336 N/A 2,796
INVESTMENT RETURN 48,355 N/A 16,200
INCOME TAX EXPENSE 30,056 N/A 10,098
INVESTMENT TAX CREDIT (1,540) N/A (349)
OTHER TAX EXPENSE 0 N/A 0
TOTAL CARRYING CHARGES $ 157,184 N/A 53,289
ALLOCATED % TO NON-OWNER * 9.77%
TOTAL CARRYING CHARGE
TO NON-OWNER (CL&P) $ 15,357
* SEE PAGE 11 OF EXHIBIT 1 TO APPENDIX I
EXHIBIT 1 TO APPENDIX I
LOCAL FACILITIES
SILVER ST. SUBSTATION
1984 INVESTMENTS
SOLE USE SOLE USE
ITEM JOINT USE NON-OWNER (CL&P) OWNER (WMECO)
TOTAL STATION LAND INVEST. $ 0 N/A 0
"PTF" LAND INVEST. 0 N/A 0
"NUG&T" LAND INVEST. 0 N/A 0
LOCAL FACIL. LAND INVEST. $ 0 N/A 0
TOTAL STATION DEPR. INVEST. $ 583,085 N/A 195,535
"PTF" DEPRECIABLE INVEST. 0 N/A 0
"NUG&T" DEPRECIABLE INVEST. 0 N/A 0
LOCAL FACIL. DEPR. INVEST. $ 583,085 N/A 195,535
LOCAL FACIL. TOTAL INVEST. $ 583,085 N/A 195,535
EXHIBIT 1 TO APPENDIX I
LOCAL FACILITIES
SILVER ST. SUBSTATION
1984 ALLOCATORS
LOAD PERCENTAGES:
NON-OWNER PEAK (CL&P) 38.4 MW
OWNER PEAX (WMECO) 304.4 MW
TOTAL OF PEAK LOADS 342.8 MW
NON-OWNER PERCENTAGE 11.20%
50% OF TOTAL ALLOCATOR X .5
NET LOAD ALLOCATOR 5.60%
FEEDER POSITIONS:
NON-OWNER FEEDERS (CL&P) 0.5 *
OWNER FEEDERS (WMECO) 5.5 *
TOTAL OF FEEDER POSITIONS 6.0
NON-OWNER PERCENTAGE 8.33%
50% OF TOTAL ALLOCATOR X .5
NET LOAD ALLOCATOR 4.17%
TOTAL NON-OWNER ALLOCATOR (CL&P) 9.77%
ALLOCATED PER APPENDIX I SECTION III
* 1 WMECO FEEDER TAPPED IN THE FIELD
EXHIBIT 1 TO APPENDIX I
LOCAL FACILITIES
SOUTHWICK SUBSTATION
1984 CHARGES
SOLE USE SOLE USE
JOINT USE NON-OWNER (CL&P) OWNER (WMECO)
INVESTMENT BASE:
NON-DEPRECIABLE
LAND $ 7,036 1,319 440
ALLOW FOR WKNG CAP:
MAT. & SUPPLIES 7,127 829 257
WKNG CAP ALLOW 7,923 936 288
TOTAL ALLOWANCE 15,050 1,765 545
TOTAL NON-DEPRECIABLE 22,086 3,084 985
DEPRECIABLE INVESTMENT 706,305 82,153 25,442
ACCUMULATED DEPRECIATION (312,397) (47,011) (14,013)
ACCUM DEFERRED INC TAXES 0 0 0
NET INVESTMENT $ 415,994 38,226 12,414
ANNUAL CARRYING CHARGES:
OPER. AND MAINT. EXPENSE $ 45,274 5,351 1,648
ADMIN. & GEN. EXPENSE 18,110 2,140 659
DEPRECIATION EXPENSE 23,267 2,715 840
PROPERTY TAX EXPENSE 10,635 1,244 386
INVESTMENT RETURN 50,127 4,606 1,496
INCOME TAX EXPENSE 31,435 2,962 957
INVESTMENT TAX CREDIT (1,128) (17) (14)
OTHER TAX EXPENSE 0 0 0
TOTAL CARRYING CHARGES $ 177,720 19,001 5,972
ALLOCATED % TO NON-OWNER * 40.59% 100.00%
CARRYING CHARGE ALLOCATION $ 72,137 19,001
TOTAL CARRYING CHARGE
TO NON-OWNER (CL&P) 91,138
* SEE PAGE 15 OF EXHIBIT 1 TO APPENDIX I
EXHIBIT 1 TO APPENDIX I
LOCAL FACILITIES
SOUTHWICK SUBSTATION
1984 INVESTMENT
SOLE USE SOLE USE
ITEM JOINT USE NON-OWNER (CL&P) OWNER (WMECO)
TOTAL STATION LAND INVEST. $ 7,036 1,319 440
"PTF" LAND INVEST. 0 0 0
"NUG&T" LAND INVEST. 0 0 0
LOCAL FACIL. LAND INVEST. $ 7,036 1,319 440
TOTAL STATION DEPR. INVEST. $ 706,305 82,153 25,442
"PTF" DEPRECIABLE INVEST. 0 0 0
"NUG&T" DEPRECIABLE INVEST. 0 0 0
LOCAL FACIL. DEPR. INVEST. $ 706,305 82,153 25,442
LOCAL FACIL. TOTAL INVEST. $ 713,341 83,472 25,882
EXHIBIT 1 TO APPENDIX I
LOCAL FACILITIES
SOUTHWICK SUBSTATION
1984 ALLOCATORS
LOAD PERCENTAGES:
NON-OWNER PEAK (CL&P) 60.8 MW
OWNER PEAX (WMECO) 134.2 MW
TOTAL OF PEAK LOADS 195.0 MW
NON-OWNER PERCENTAGE 31.18%
50% OF TOTAL ALLOCATOR X .5
NET LOAD ALLOCATOR 15.59%
FEEDER POSITIONS:
NON-OWNER FEEDERS (CL&P) 1.5 *
OWNER FEEDERS (WMECO) 1.5 *
TOTAL OF FEEDER POSITIONS 3.0
NON-OWNER PERCENTAGE 50.00%
50% OF TOTAL ALLOCATOR X .5
NET LOAD ALLOCATOR 25.00%
TOTAL NON-OWNER ALLOCATOR (CL&P) 40.59%
ALLOCATED PER APPENDIX I SECTION III
* 1 WMECO FEEDER TAPPED IN THE FIELD
EXHIBIT 1 TO APPENDIX I
LOCAL FACILITIES
SOUTHWICK TRANSMISSION
1984 CHARGES
CL&P (OWNER)
INVESTMENT BASE:
NON-DEPRECIABLE
LAND $ 223,363
ALLOW FOR WORKING CAPITAL:
MATERIALS & SUPPLIES 3,556
WORKING CAPITAL ALLOWANCE 1,506
TOTAL ALLOWANCE 5,062
TOTAL NON-DEPRECIABLE 228,425
DEPRECIABLE INVESTMENT 352,434
ACCUMULATED DEPRECIATION (122,698)
ACCUM DEFERRED INC TAXES 0
NET INVESTMENT $ 458,161
ANNUAL CARRYING CHARGES:
OPER. AND MAINT. EXPENSE $ 8,607
ADMIN. & GEN. EXPENSE 3,443
DEPRECIATION EXPENSE 11,253
PROPERTY TAX EXPENSE 4,300
INVESTMENT RETURN 55,208
INCOME TAX EXPENSE 32,979
INVESTMENT TAX CREDIT (7)
OTHER TAX EXPENSE 0
TOTAL CARRYING CHARGES $ 115,783
ALLOCATED % TO NON-OWNER (WMECO) * 0.1624
WMECO OWES TO CL&P $ 18,803
* SEE PAGE 20 OF EXHIBIT 1 TO APPENDIX I
EXHIBIT 1 TO APPENDIX I
LOCAL FACILITIES
SOUTHWICK TRANSMISSION
1984 CHARGES
WMECO (OWNER)
INVESTMENT BASE:
NON-DEPRECIABLE
LAND $ 135,280
ALLOW FOR WORKING CAPITAL:
MATERIALS & SUPPLIES 2,890
WORKING CAPITAL ALLOWANCE 1,224
TOTAL ALLOWANCE 4,114
TOTAL NON-DEPRECIABLE 139,394
DEPRECIABLE INVESTMENT 286,424
ACCUMULATED DEPRECIATION (99,094)
ACCUM DEFERRED INC TAXES 0
NET INVESTMENT $ 326,724
ANNUAL CARRYING CHARGES:
OPER. AND MAINT. EXPENSE $ 6,995
ADMIN. & GEN. EXPENSE 2,798
DEPRECIATION EXPENSE 8,981
PROPERTY TAX EXPENSE 6,725
INVESTMENT RETURN 39,370
INCOME TAX EXPENSE 23,429
INVESTMENT TAX CREDIT 0
OTHER TAX EXPENSE 0
TOTAL CARRYING CHARGES $ 88,298
ALLOCATED % TO NON-OWNER (CL&P) * 0.8376
CL&P OWES TO WMECO $ 73,959
* SEE PAGE 20 OF EXHIBIT 1 TO APPENDIX I
EXHIBIT 1 TO APPENDIX I
LOCAL FACILITIES
TRANSMISSION
1984 INVESTMENT
TRANSMISSION TRANSMISSION
LINE SOUTHWICK LINE SOUTHWICK
ITEM CL&P (OWNER) WMECO (OWNER)
LOCAL TRANS. LAND INVEST. $ 223,363 $ 135,280
"PTF" LAND INVEST. 0 0
"NUG&T" LAND INVEST. 0 0
LOCAL TRANS. LAND INVEST. $ 223,363 $ 135,280
LOCAL TRANS. DEPRE. INVEST. $ 352,434 $ 286,424
"PTF" DEPRECIABLE INVEST. 0 0
"NUG&T" DEPRECIABLE INVEST. 0 0
LOCAL TRANS. DEPR. INVEST. $ 352,434 $ 286,424
LOCAL FACIL. TOTAL INVEST. $ 575,797 $ 421,704
EXHIBIT 1 TO APPENDIX I
LOCAL FACILITIES
SOUTHWICK TRANSMISSION
1984 ALLOCATORS
CL&P (OWNERS)
LOAD PERCENTAGES:
NON-OWNER PEAK (WMECO) 7873.0 * MW
OWNER PEAX (CL&P) 40594.7 * MW
TOTAL OF PEAK LOADS 48467.7 MW
NON-OWNER PERCENTAGE 16.24%
SOUTHWICK TRANSMISSION
1984 ALLOCATORS
WMECO (OWNERS)
LOAD PERCENTAGES:
NON-OWNER PEAK (CL&P) 40594.7 * MW
OWNER PEAX (WMECO) 7873.0 * MW
TOTAL OF PEAK LOADS 48467.7 MW
NON-OWNER PERCENTAGE 83.76%
ALLOCATED PER APPENDIX I SECTION III
* SUM OF THE MONTHLY RATCHETED PEAK LOADS PER NUG&T
EXHIBIT 1 TO APPENDIX I
LOCAL FACILITIES
FRANCONIA DISTRIBUTION
1984 CHARGES
COMMON
INVESTMENT BASE:
NON-DEPRECIABLE
LAND $ 0
ALLOW FOR WORKING CAPITAL:
MATERIALS & SUPPLIES 78
WORKING CAPITAL ALLOWANCE 166
TOTAL ALLOWANCE 244
TOTAL NON-DEPRECIABLE 244
DEPRECIABLE INVESTMENT 7,771
ACCUMULATED DEPRECIATION (2,767)
ACCUM DEFERRED INC TAXES 0
NET INVESTMENT $ 5,248
ANNUAL CARRYING CHARGES:
OPER. AND MAINT. EXPENSE $ 949
ADMIN. & GEN. EXPENSE 380
DEPRECIATION EXPENSE 341
PROPERTY TAX EXPENSE 190
INVESTMENT RETURN 632
INCOME TAX EXPENSE 477
INVESTMENT TAX CREDIT (3)
OTHER TAX EXPENSE 0
TOTAL CARRYING CHARGES $ 2,966
ADJUSTMENT PERCENTAGE * 0.1875
CL&P OWES TO WMECO $ 556
* SEE PAGE 26 OF EXHIBIT 1 TO APPENDIX I
EXHIBIT 1 TO APPENDIX I
LOCAL FACILITIES
FRANCONIA DISTRIBUTION
1984 CHARGES
COMMON
INVESTMENT BASE:
NON-DEPRECIABLE
LAND $ 0
ALLOW FOR WORKING CAPITAL:
MATERIALS & SUPPLIES 267
WORKING CAPITAL ALLOWANCE 566
TOTAL ALLOWANCE 833
TOTAL NON-DEPRECIABLE 833
DEPRECIABLE INVESTMENT 26,455
ACCUMULATED DEPRECIATION (7,193)
ACCUM DEFERRED INC TAXES 0
NET INVESTMENT $ 20,095
ANNUAL CARRYING CHARGES:
OPER. AND MAINT. EXPENSE $ 3,232
ADMIN. & GEN. EXPENSE 1,293
DEPRECIATION EXPENSE 929
PROPERTY TAX EXPENSE 648
INVESTMENT RETURN 2,421
INCOME TAX EXPENSE 137
INVESTMENT TAX CREDIT (26)
OTHER TAX EXPENSE 0
TOTAL CARRYING CHARGES $ 8,634
ADJUSTMENT PERCENTAGE * 0.7500
CL&P OWES TO WMECO $ 6,476
* SEE PAGE 26 OF EXHIBIT 1 TO APPENDIX I
EXHIBIT 1 TO APPENDIX I
LOCAL FACILITIES
SILVER STREET DISTRIBUTION
1984 CHARGES
COMMON
INVESTMENT BASE:
NON-DEPRECIABLE
LAND $ 0
ALLOW FOR WORKING CAPITAL:
MATERIALS & SUPPLIES 361
WORKING CAPITAL ALLOWANCE 765
TOTAL ALLOWANCE 1,126
TOTAL NON-DEPRECIABLE 1,126
DEPRECIABLE INVESTMENT 35,781
ACCUMULATED DEPRECIATION (11,404)
ACCUM DEFERRED INC TAXES 0
NET INVESTMENT $ 25,503
ANNUAL CARRYING CHARGES:
OPER. AND MAINT. EXPENSE $ 4,371
ADMIN. & GEN. EXPENSE 1,748
DEPRECIATION EXPENSE 1,432
PROPERTY TAX EXPENSE 876
INVESTMENT RETURN 3,073
INCOME TAX EXPENSE 357
INVESTMENT TAX CREDIT (74)
OTHER TAX EXPENSE 0
TOTAL CARRYING CHARGES $ 11,783
ADJUSTMENT PERCENTAGE * 0.0833
CL&P OWES TO WMECO $ 982
* SEE PAGE 27 OF EXHIBIT 1 TO APPENDIX I
EXHIBIT 1 TO APPENDIX I
LOCAL FACILITIES
SOUTHWICK DISTRIBUTION
1984 CHARGES
COMMON
INVESTMENT BASE:
NON-DEPRECIABLE
LAND $ 0
ALLOW FOR WORKING CAPITAL:
MATERIALS & SUPPLIES 87
WORKING CAPITAL ALLOWANCE 185
TOTAL ALLOWANCE 272
TOTAL NON-DEPRECIABLE 272
DEPRECIABLE INVESTMENT 8,653
ACCUMULATED DEPRECIATION (3,144)
ACCUM DEFERRED INC TAXES 0
NET INVESTMENT $ 5,781
ANNUAL CARRYING CHARGES:
OPER. AND MAINT. EXPENSE $ 1,057
ADMIN. & GEN. EXPENSE 423
DEPRECIATION EXPENSE 387
PROPERTY TAX EXPENSE 212
INVESTMENT RETURN 697
INCOME TAX EXPENSE 126
INVESTMENT TAX CREDIT (37)
OTHER TAX EXPENSE 0
TOTAL CARRYING CHARGES $ 2,865
ADJUSTMENT PERCENTAGE * 0.5000
CL&P OWES TO WMECO $ 1,432
* SEE PAGE 27 OF EXHIBIT 1 TO APPENDIX I
EXHIBIT 1 TO APPENDIX I
LOCAL FACILITIES
DISTRIBUTION
1984 INVESTMENT
Distrib. Distrib. Distrib. Distrib.
Franconia Franconia Silver St Southwick
ITEM Common Common Common Common
TOTAL STATION LAND INVEST. $ 0 0 0 0
"PTF" LAND INVEST. 0 0 0 0
"NUG&T" LAND INVEST. 0 0 0 0
LOCAL FACIL. LAND INVEST. $ 0 0 0 0
TOTAL STATION DEPRE. INVEST. $ 7,771 26,455 35,781 8,653
"PTF" DEPRECIABLE INVEST. 0 0 0 0
"NUG&T" DEPRECIABLE INVEST. 0 0 0 0
LOCAL FACIL. DEPR. INVEST. $ 7,771 26,455 35,781 8,653
LOCAL FACIL. TOTAL INVEST. $ 7,771 26,455 35,781 8,653
EXHIBIT 1 TO APPENDIX I
LOCAL FACILITIES
FRANCONIA DISTRIBUTION
1984 ALLOCATORS
COMMON
LOAD PERCENTAGES:
NON-OWNER PEAK (CL&P) 1.5 *
OWNER PEAX (WMECO) 6.5 *
TOTAL OF PEAK LOADS 8.0
NON-OWNER PERCENTAGE (CL&P) 18.75%
FRANCONIA DISTRIBUTION
1984 ALLOCATORS
CL&P
LOAD PERCENTAGES:
NON-OWNER PEAK (CL&P) 5.1 *
OWNER PEAX (WMECO) 0.5 *
TOTAL OF PEAK LOADS 2.0
NON-OWNER PERCENTAGE (CL&P) 75.00%
ALLOCATED PER APPENDIX I SECTION III
* 1 WMECO FEEDER TAPPED IN THE FIELD
EXHIBIT 1 TO APPENDIX I
LOCAL FACILITIES
SILVER STREET DISTRIBUTION
1984 ALLOCATORS
COMMON
LOAD PERCENTAGES:
NON-OWNER PEAK (CL&P) 0.5 *
OWNER PEAX (WMECO) 5.5 *
TOTAL OF PEAK LOADS 6.0
NON-OWNER PERCENTAGE (CL&P) 8.33%
SOUTHWICK DISTRIBUTION
1984 ALLOCATORS
COMMON
LOAD PERCENTAGES:
NON-OWNER PEAK (CL&P) 1.5 *
OWNER PEAX (WMECO) 1.5 *
TOTAL OF PEAK LOADS 3.0
NON-OWNER PERCENTAGE (CL&P) 50.00%