SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549-1004
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1995
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OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
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Commission File Number 1-6392
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PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
---------------------------------------
(Exact name of registrant as specified in its charter)
NEW HAMPSHIRE 02-018150
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(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
1000 ELM STREET, MANCHESTER, NEW HAMPSHIRE 03105
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(Address of principal executive offices) (Zip Code)
(603) 669-4000
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(Registrant's telephone number, including area code)
Not Applicable
--------------
(Former name, former address and former fiscal year,
if changed since last report)
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 such shorter 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 practicable date.
Class Outstanding at July 31, 1995
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Common Shares, $10.00 par value 1,000 shares
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
TABLE OF CONTENTS
Page No.
--------
Part I. Financial Information
Item 1. Financial Statements
Balance Sheets - June 30, 1995 and
and December 31, 1994 2
Statements of Income - Three and Six
Months Ended June 30, 1995 and 1994 4
Statements of Cash Flows - Six Months
Ended June 30, 1995 and 1994 5
Notes to Financial Statements 6
Item 2. Management's Discussion and Analysis
of Financial Condition and Results
of Operations 8
Part II. Other Information
Item 1. Legal Proceedings 13
Item 4. Submission of Matters to a Vote
of Security Holders 13
Item 5. Other Information 13
Item 6. Exhibits and Reports on Form 8-K 15
Signatures 16
PART I. FINANCIAL INFORMATION
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
BALANCE SHEETS
(Unaudited)
June 30, December 31,
1995 1994
------------- -------------
(Thousands of Dollars)
ASSETS
------
Utility Plant, at original cost:
Electric................................................ $ 2,068,445 $ 2,038,625
Less: Accumulated provision for depreciation......... 491,195 474,129
------------- -------------
1,577,250 1,564,496
Construction work in progress........................... 19,023 17,781
Nuclear fuel, net....................................... 2,066 2,248
------------- -------------
Total net utility plant............................. 1,598,339 1,584,525
------------- -------------
Other Property and Investments:
Nuclear decommissioning trusts, at market............... 2,142 1,815
Investments in regional nuclear generating
companies and subsidiary company, at equity............ 19,241 19,551
Other, at cost.......................................... 635 394
------------- -------------
22,018 21,760
------------- -------------
Current Assets:
Cash and special deposits............................... 411 322
Notes receivable from affiliated companies.............. 69,250 35,000
Receivables, net........................................ 79,449 76,173
Accounts receivable from affiliated companies........... 1,943 3,779
Accrued utility revenues................................ 31,168 36,547
Fuel, materials, and supplies, at average cost.......... 44,630 37,453
Prepayments and other................................... 25,304 20,829
------------- -------------
252,155 210,103
------------- -------------
Deferred Charges:
Regulatory assets:
Unamortized acquisition costs.......................... 633,942 678,974
Income taxes, net...................................... 68,197 66,466
Unrecovered contract obligation--Yankee Atomic
Electric Company...................................... 27,070 28,572
Recoverable energy costs............................... 208,816 194,994
Other.................................................. 2,452 2,499
Unamortized debt expense................................ 15,730 17,064
Deferred receivable from affiliated company............. 33,284 33,284
Other................................................... 3,383 7,726
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992,874 1,029,579
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Total Assets........................................ $ 2,865,386 $ 2,845,967
============= =============
See accompanying notes to financial statements.
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
BALANCE SHEETS
(Unaudited)
June 30, December 31,
1995 1994
------------- -------------
(Thousands of Dollars)
CAPITALIZATION AND LIABILITIES
------------------------------
Capitalization:
Common stock--$1 par value.
Authorized and outstanding 1,000 shares................ $ 1 $ 1
Capital surplus, paid in................................ 422,076 421,784
Retained earnings....................................... 154,124 125,034
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Total common stockholder's equity.............. 576,201 546,819
Preferred stock subject to mandatory redemption......... 125,000 125,000
Long-term debt.......................................... 686,485 905,985
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Total capitalization........................... 1,387,686 1,577,804
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Obligations Under Seabrook Power Contract
and Other Capital Leases................................. 857,982 849,776
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Current Liabilities:
Long-term debt--current portion......................... 266,500 94,000
Obligations under capital leases--current
portion................................................ 38,133 38,191
Accounts payable........................................ 33,575 45,984
Accounts payable to affiliated companies................ 17,865 17,309
Accrued taxes........................................... 19,555 4,304
Accrued interest........................................ 10,862 10,496
Accrued pension benefits................................ 37,438 36,269
Other................................................... 20,459 20,350
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444,387 266,903
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Deferred Credits:
Accumulated deferred income taxes....................... 85,339 62,080
Accumulated deferred investment tax credits............. 5,337 5,614
Deferred contract obligation--Yankee Atomic
Electric Company....................................... 27,070 28,572
Deferred revenue from affiliated company................ 33,284 33,284
Other................................................... 24,301 21,934
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175,331 151,484
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Commitments and Contingencies (Note 3)<F3>
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Total Capitalization and Liabilities........... $ 2,865,386 $ 2,845,967
============= =============
See accompanying notes to financial statements.
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
STATEMENTS OF INCOME
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
--------------------- ---------------------
1995 1994 1995 1994
---------- ---------- ---------- ----------
(Thousands of Dollars)
Operating Revenues................................. $ 232,849 $ 210,875 $ 485,186 $ 460,154
---------- ---------- ---------- ----------
Operating Expenses:
Operation --
Fuel, purchased and net interchange power..... 64,179 40,640 138,309 109,565
Other......................................... 73,830 80,575 145,532 151,932
Maintenance...................................... 12,996 12,153 20,873 23,909
Depreciation..................................... 10,861 9,222 21,046 19,172
Amortization of regulatory assets, net........... 13,975 14,019 28,111 28,327
Federal and state income taxes................... 15,151 12,292 36,821 31,538
Taxes other than income taxes.................... 10,377 9,586 21,156 19,882
---------- ---------- ---------- ----------
Total operating expenses................... 201,369 178,487 411,848 384,325
---------- ---------- ---------- ----------
Operating Income................................... 31,480 32,388 73,338 75,829
---------- ---------- ---------- ----------
Other Income:
Equity in earnings of regional nuclear
generating companies and subsidary company..... 510 485 775 939
Other, net....................................... 1,563 572 47 821
Income taxes--credit............................. (236) (415) 742 (1,772)
---------- ---------- ---------- ----------
Other income, net.......................... 1,837 642 1,564 (12)
---------- ---------- ---------- ----------
Income before interest charges............. 33,317 33,030 74,902 75,817
---------- ---------- ---------- ----------
Interest Charges:
Interest on long-term debt....................... 19,555 18,927 39,373 37,309
Other interest................................... (130) 102 (186) 229
---------- ---------- ---------- ----------
Interest charges, net...................... 19,425 19,029 39,187 37,538
---------- ---------- ---------- ----------
Net Income......................................... $ 13,892 $ 14,001 $ 35,715 $ 38,279
========== ========== ========== ==========
See accompanying notes to financial statements.
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended
June 30,
-----------------------
1995 1994
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(Thousands of Dollars)
Operating Activities:
Net Income.................................................$ 35,715 $ 38,279
Adjustments to reconcile to net cash
from operating activities:
Depreciation............................................. 21,046 19,172
Deferred income taxes and investment tax credits, net.... 34,057 32,906
Recoverable energy costs, net of amortization............ (3,510) (28,693)
Amortization of acquisition costs........................ 28,111 28,327
Other sources of cash.................................... 12,498 2,205
Other uses of cash....................................... (72) (9,334)
Changes in working capital:
Receivables and accrued utility revenues................. 3,939 8,542
Fuel, materials, and supplies............................ (7,177) 274
Accounts payable......................................... (11,853) 6,602
Accrued taxes............................................ 15,251 18,748
Other working capital (excludes cash).................... (13,143) (14,143)
----------- -----------
Net cash flows from operating activities..................... 114,862 102,885
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Financing Activities:
Net decrease in short-term debt............................ - (2,500)
Reacquisitions and retirements of long-term debt........... (47,000) (47,000)
Cash dividends on preferred stock.......................... (6,625) (6,625)
----------- -----------
Net cash flows used for financing activities................. (53,625) (56,125)
----------- -----------
Investment Activities:
Investment in plant:
Electric utility plant................................... (26,498) (11,427)
Nuclear fuel............................................. (234) -
----------- -----------
Net cash flows used for investments in plant............... (26,732) (11,427)
NU System Money Pool....................................... (34,250) (40,750)
Other investment activities, net........................... (166) (174)
----------- -----------
Net cash flows used for investments.......................... (61,148) (52,351)
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Net Increase (Decrease) in Cash For The Period............... 89 (5,591)
Cash and special deposits - beginning of period.............. 322 5,995
----------- -----------
Cash and special deposits - end of period....................$ 411 $ 404
=========== ===========
See accompanying notes to financial statements.
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. General
The accompanying unaudited financial statements should be read in conjunction
with the Annual Report of Public Service Company of New Hampshire (the company
or PSNH), a wholly owned subsidiary of Northeast Utilities (NU), on Form 10-K
for the year ended December 31, 1994 (1994 Form 10-K). In the opinion of the
company, the accompanying financial statements contain all adjustments necessary
to present fairly the financial position as of June 30, 1995, the results of
operations for the three and six months ended June 30, 1995 and 1994, and the
statements of cash flows for the six months ended June 30, 1995 and 1994. The
results of operations for the three and six months ended June 30, 1995 and 1994
are not necessarily indicative of the results expected for a full year.
Certain reclassifications of prior period data have been made to conform with
the current period presentation.
2. Accounting Change
The company's accounting policies and the accompanying financial statements
conform to generally accepted accounting principles applicable to rate-regulated
enterprises and reflect the effects of the ratemaking process in accordance with
Statement of Financial Accounting Standards No. 71, "Accounting for Certain
Types of Regulation" (SFAS 71). In the event that any portion of the company's
operations is no longer subject to the provisions of SFAS 71, as a result of a
change in the cost-of-service based regulatory structure or the effects of
competition, the company would be required to write off related regulatory
assets and liabilities. In addition, the company would be required to determine
any impairment to other assets and write down these assets to their fair value.
Statement of Financial Accounting Standards No. 121, "Accounting for the
Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed Of" (SFAS
121), issued in March 1995 and effective January 1, 1996, establishes accounting
standards for the impairment of long-lived assets. SFAS 121 requires that
regulatory assets which are no longer probable of recovery through future
revenues be charged to earnings. Based upon the current regulatory environment
in the company's operating service area, it is not expected that SFAS 121 would
have a material impact on the financial position or results of operations of the
company upon adoption. This conclusion may change in the future as competitive
factors influence wholesale and retail pricing in the electric utility industry,
or if the cost-of-service based regulatory structure were to change.
3. Commitments and Contingencies
Construction Program: For information regarding PSNH's construction program,
see the Notes to Financial Statements in PSNH's 1994 Form 10-K.
PSNH Rate Agreement: Effective June 1, 1995, the sixth of seven successive 5.5
percent annual increases went into effect for PSNH's base retail rates. For
further information regarding the PSNH rate agreement, see the Notes to
Financial Statements in PSNH's 1994 Form 10-K.
Environmental Matters: For information regarding environmental matters, see the
Notes to Financial Statements in PSNH's March 31, 1995 Form 10-Q and 1994 Form
10-K.
Nuclear Insurance Contingencies: For information regarding nuclear insurance
contingencies, see the Notes to Financial Statements in PSNH's 1994 Form 10-K.
Purchased Power Arrangements: For information regarding purchased power
arrangements, see the Notes to Financial Statements in PSNH's 1994 Form 10-K.
Hydro-Quebec: For information regarding Hydro-Quebec, see the Notes to
Financial Statements in PSNH's 1994 Form 10-K.
4. Workforce Reduction
For information regarding the NU system's workforce reduction program, see
"Management's Discussion and Analysis of Financial Condition and Results of
Operations," in this Form 10-Q.
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
Management's Discussion and Analysis of Financial
Condition and Results of Operations
This section contains management's assessment of PSNH's (the company) financial
condition and the principal factors having an impact on the results of
operations. The company is a wholly-owned subsidiary of Northeast Utilities
(NU). This discussion should be read in conjunction with the company's
financial statements, footnotes and Management's Discussion and Analysis in the
1994 Form 10-K and the First Quarter 1995 Form 10-Q.
FINANCIAL CONDITION
Overview
Net income remained at approximately $14 million for the three-months ended June
30, 1995 as compared to the same period in 1994, and decreased to approximately
$36 million for the six months ended
June 30, 1995, from approximately $38 million for the same period in 1994.
PSNH's retail kilowatt-hour sales for the first six months of 1995 were down by
approximately one percent from 1994. Residential and commercial sales were
lower as a result of the mild winter were partially offset by higher industrial
sales from economic growth in New Hampshire.
Workforce Reductions
In July 1995, NU announced a program aimed at reducing the nuclear
organization's total workforce by approximately 250 employees by the end of
January 1996. An early retirement program is available to approximately 155
eligible employees of NU's subsidiaries, including Seabrook employees, who will
be at least age 55 with ten years of service as of January 1, 1996. The
employees have until September 15, 1995, to make their decisions. The balance
of the workforce reduction will be achieved through attrition and layoffs. The
NU system-wide estimated cost of the early retirements and layoffs could be in
the range of $10 million to $12 million.
Retail Wheeling and Utility Restructuring
See "Part II. Item 5. Other Information" for updated information concerning
retail wheeling and utility restructuring.
Regulatory Matters
Effective June 1, 1995, PSNH put into effect the sixth of seven successive 5.5
percent annual retail rate increases called for by the 1989 Rate Agreement.
This action followed the failure of negotiations with the Governor and the
Attorney General of New Hampshire to amend the 1989 Rate Agreement to address
the future level of PSNH's rates as well as other items concerning the
transition to a more competitive environment.
Furthermore, administrative decisions of the New Hampshire Public Utilities
Commission (NHPUC), legislation enacted by the New Hampshire legislature, and
comments by the Governor of New Hampshire have brought into question the future
regulatory environment in New Hampshire. PSNH plans to appeal the recent NHPUC
decision relating to the exclusivity of electric utility franchises in New
Hampshire and continues to evaluate other options for protecting its interests.
See "Part II. Item 5. Other Information" for more information regarding the
recent legislation and the Freedom Electric Power Company decision.
The costs associated with purchases by PSNH from certain nonutility generators
(NUGs) over the level assumed in rates are deferred and recovered over ten-year
periods through the Fuel and Purchased Power Adjustment Clause (FPPAC). At June
30, 1995, the unrecovered deferrals were approximately $185 million.
PSNH has reached tentative agreements with the six remaining wood-fired NUGs.
These agreements will result in significant savings to customers if contracts
are finalized and approved by the NHPUC.
Nuclear Matters
Seabrook operated at a capacity factor of 94 percent through June 1995, as
compared to 41 percent for the same period in 1994. The lower 1994 capacity
factor was primarily the result of a 23-day shutdown for an unplanned outage
that began in January and a 114-day refueling and maintenance outage that began
in April.
In June 1995, Maine Yankee Atomic Power Company (Maine Yankee) began an
operation to sleeve all 17,000 tubes in the plant's three steam generators.
Maine Yankee expects that the plant will return to service near the end of 1995.
The approximate cost to Maine Yankee of the sleeving operation has been
determined to be $40 million, which will be expensed. PSNH will be billed by
Maine Yankee for its pro rata share (5 percent) of these costs over the next
six months, under its power contract. In addition, PSNH will incur additional
costs for replacement power (estimated at $250,000 per month) until Maine Yankee
returns to service.
Liquidity And Capital Resources
Cash provided from operations increased approximately $12 million for the first
six months of 1995, as compared with the same period in 1994, primarily due to
higher energy purchases as a result of the Seabrook outages in 1994. Cash flows
used for financing activities was approximately $3 million lower in 1995, as
compared with 1994. Cash used for investments increased approximately $9
million for the first six months of 1995, as compared with the same period for
1994, primarily due to an increase in plant, partially offset by lower
investment in the NU System Money Pool.
PSNH's construction program expenditures amounted to approximately $26 million
for the first six months of 1995, as compared to approximately $11 million in
1994, primarily due to the costs associated with the installation of the
pollution control system at Merrimack Station.
North Atlantic Energy Corporation (NAEC) filed an application on August 4, 1995
to issue up to $240 million of five-year notes in a refinancing which could save
PSNH customers $15 million over the next five years. The $15 million in savings
would be passed on to customers through PSNH's Fuel and Purchased Power
Adjustment Clause (FPPAC) , which is reset twice a year, on June 1 and December
1. NAEC estimates that if NHPUC approval is secured this fall, the refinancing
should take place in late 1995.
Results of Operations
Comparison of the Second Quarter 1995 with the Second Quarter
--------------------------------------------------------------
of 1994
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Operating revenues increased approximately $22 million in the second quarter of
1995, as compared with 1994. The components of the change in operating revenues
are as follows:
Changes in Operating Revenues Increase/Decrease
----------------------------- -----------------
(Millions of Dollars)
Regulatory decisions $ 4
Fuel, purchased power,
and FPPAC cost recoveries 20
Other (2)
---
Total revenue change $22
===
Revenues related to regulatory decisions increased primarily because of the June
1994 and June 1995 retail rate increases. Fuel, purchased power, and FPPAC cost
recoveries increased primarily due to higher sales to nonaffiliated utilities.
Retail sales volume increased 2.1 percent for the second quarter of 1995, as
compared with 1994.
Fuel, purchased and net interchange power expense increased approximately $24
million in the second quarter of 1995, as compared with 1994, primarily due to
the timing in the recognition of fuel expenses under the FPPAC.
Other operation expense decreased approximately $7 million in the second quarter
of 1995, as compared with 1994, primarily due to the higher costs under the
Seabrook Power Contract as a result of maintenance work during the extended
refueling and maintenance outage in 1994.
Federal and state income taxes increased approximately $3 million in the second
quarter of 1995, as compared with 1994, primarily due to the lower tax benefits
associated with the Seabrook inter-company loss.
Comparison of the First Six Months of 1995 with the First Six
-------------------------------------------------------------
Months of 1994
--------------
Operating revenues increased approximately $25 million in the first six months
of 1995, as compared with 1994. The components of the change in operating
revenues are as follows:
Changes in Operating Revenues Increase/Decrease
----------------------------- -----------------
(Millions of Dollars)
Regulatory decisions $10
Fuel, purchased power,
and FPPAC cost recoveries 25
Retail sales volume (5)
Wholesale revenues and other (5)
---
Total revenue change $25
===
Revenues related to regulatory decisions increased primarily because of the June
1994 and June 1995 retail rate increases. Fuel, purchased power, and FPPAC cost
recoveries increased primarily due to higher sales to non-affiliated utilities.
Retail sales volume decreased 1.2 percent for the first six months of 1995 from
1994 sales levels primarily due to mild weather in the first quarter of 1995.
Fuel, purchased and net interchange power expense increased approximately $29
million in the first six months of 1995, as compared with 1994, primarily due
to the timing in the recognition of fuel expenses under the FPPAC.
Other operation and maintenance expense decreased approximately $9 million in
the first six months of 1995, as compared with 1994, primarily due to the higher
costs under the Seabrook Power Contract as a result of maintenance work during
the extended refueling and maintenance outage in 1994 and high storm costs in
1994.
Federal and state income taxes increased approximately $4 million in the first
six months of 1995, as compared with 1994, primarily due to the lower tax
benefits associated with the Seabrook inter-company loss.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
1. On May 23, 1995, the U.S. Court of Appeals for the First Circuit affirmed
the Federal Energy Regulatory Commission's (FERC) order on the Seabrook Power
Contract. The court held that FERC had correctly applied the "public interest
standard" to modify terms of the contract. The order affects only future
changes to the Seabrook Power Contract, including changes to decommissioning
charges and rate of return.
For additional information on these proceedings, see "Item 3 - Legal
Proceedings" in PSNH's 1994 Form 10-K.
Item 4. Submission of Matters to a Vote of Security Holders
At the Annual Meeting of Stockholders of PSNH held on May 1, 1995, stockholders
voted to fix the number of directors for the ensuing year at nine. The vote
fixing the number of directors at nine was 1,000 shares in favor, representing
100 percent of the issued and outstanding shares of common stock of PSNH.
At the Annual Meeting, the following nine directors were elected, each by a vote
of 1,000 shares in favor, to serve on the Board of Directors for the ensuing
year: John C. Collins, William B. Ellis, Bernard M. Fox, William T. Frain, Jr.,
Cheryl W. Grise, Gerald Letendre, Hugh C. MacKenzie, Jane E. Newman and Robert
P. Wax.
Item 5. Other Information
1. On June 20, 1995, the staff of the Securities and Exchange Commission
recommended "conditional repeal" of the Public Utility Holding Company Act of
1935 and substantial loosening of rules presently restricting NU's capital-
raising and diversification activities. Repeal is subject to approving
legislation in Congress, which has yet to be introduced. Comments on the rules
are due in September.
For additional information on this matter, see "Business - Public Utility
Regulation" in PSNH's 1994 Form 10-K.
2. Under legislation effective June 19, 1995, the New Hampshire Public Utility
Commission (NHPUC) can approve a retail wheeling pilot program to begin no
earlier than January 1, 1996. The new law creates a legislative study committee
to investigate the future of the electric industry and state regulation, with a
scheduled report date of November 1995.
The bill also permits economic development and business retention rates to
be offered to new or expanding business and to manufacturers threatening to
leave the state or close their operations. PSNH filed economic development and
business retention rate tariffs on June 26, 1995. On July 14, 1995, the NHPUC
suspended the tariffs and denied PSNH's requests to approve the new rates on a
temporary basis.
For additional information on this matter, see "Business - Competition and
Marketing - Retail Marketing" in PSNH's 1994 Form 10-K.
3. On June 6, 1995, in a 2-1 decision involving Freedom Electric Power
Company's (FEPCo) petition to serve selected large PSNH customers, the NHPUC
found that electric utility franchises in New Hampshire are not exclusive as a
matter of law. The NHPUC also found that the approval of competition in PSNH's
territory in no way affected the State of New Hampshire's commitment to the 1989
Rate Agreement with PSNH because rates were not being affected. PSNH plans to
appeal this decision.
On July 14, 1995, FEPCo filed a petition for declaratory ruling with the
FERC requesting a ruling that FEPCo is entitled to wheeling services from PSNH.
For additional information on this proceeding, see "Business - Competition and
Marketing - Retail Marketing" in PSNH's 1994 Form
10-K.
4. On May 23, 1995, the NHPUC denied PSNH's motion for rehearing in PSNH's
least cost planning proceeding. In an April 1995 decision, the NHPUC had
required PSNH to conduct future resource planning based on only the economics of
PSNH, rather than the combined NU system.
For additional information on this proceeding, see "Other Information" in PSNH's
1995 Form 10-Q for the quarter ended March 31, 1995.
5. On June 22, 1995, The United States Court of Federal Claims held in Yankee
------
Atomic Electric Company v. The United States that as applied to Yankee Atomic
--------------------------------------------
Electric Company (YAEC), the Uranium Enrichment Decontamination and
Decommissioning Fund, which pursuant to the 1992 Energy Policy Act imposes an
annual "special assessment" on domestic utilities, is an unlawful add-on to the
bargained-for contract price for enriched uranium. As a result, the federal
government must refund the approximately $3.0 million that YAEC has paid into
the fund since its inception. NU is evaluating the applicability of this
decision to the $21 million that the System companies have already paid into the
fund, and whether this alters the System companies' obligation to pay such
special assessments in the future. This decision is subject to appeal.
For additional information on this proceeding, see "Business - Electric
Operations - Nuclear Generation - Decommissioning" in PSNH's 1994 Form 10-K.
6. Retirement of William B. Ellis
On August 1, 1995, pursuant to a management succession plan that was introduced
on January 29, 1992, William B. Ellis resigned as Chairman of NU's Board of
Trustees, and Bernard M. Fox assumed that position. Mr. Ellis also resigned
from the Board of Directors of PSNH and certain other NU subsidiaries.
Item 6. Exhibits and Reports on Form 8-K
(a) Listing of Exhibits:
Exhibit
Number Description
------- -----------
27 Financial Data Schedule
(b) Reports on Form 8-K:
No reports on Form 8-K have been filed during this reporting period.
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 hereunto duly authorized.
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
---------------------------------------
Registrant
Date August 14, 1995 By /s/ Bernard M. Fox
-------------------- -----------------------------
Bernard M. Fox
Vice Chairman and Chief
Executive Officer,
and Director
Date August 14, 1995 By /s/ John W. Noyes
-------------------- -----------------------------
John W. Noyes
Vice President and
Controller