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Form U-13-60
Mutual and Subsidiary Service Companies
Revised February 7, 1980
ANNUAL REPORT
FOR THE PERIOD
Beginning January 1, 1998 and Ending December 31, 1998
TO THE
US SECURITIES AND EXCHANGE COMMISSION
OF
UNITIL SERVICE CORP.
A Subsidiary Service Company
Date of Incorporation October 9, 1984
State of Incorporation New Hampshire
Location of Principal Executive Offices of Reporting Company:
6 Liberty Lane West
Hampton, New Hampshire 03842-1720
Name, Title and address of officer to whom correspondence concerning this
report should be addressed:
Laurence M. Brock, VP and Controller
6 Liberty Lane West
Hampton, New Hampshire 03842-1720
Name of Principal Holding Company Whose Subsidaries are served by Reporting
Company:
UNITIL Corporation
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1998
LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNTS
Description of Schedules and Accounts Schedule or Account Page
Number Number
COMPARATIVE BALANCE SHEET Schedule I 4-5
SERVICE COMPANY PROPERTY Schedule II 6-7
ACCUMULATED PROVISION FOR DEPRECIATION
AND AMORTIZATION OF SERVICE COMPANY PROPERTY Schedule III 8
INVESTMENTS Schedule IV 9
ACCOUNTS RECEIVABLE FROM ASSOCIATE
COMPANIES Schedule V 10
FUEL STOCK EXPENSES UNDISTRIBUTED Schedule VI 11
STORES EXPENSE UNDISTRIBUTED Schedule VII 12
MISCELLANEOUS CURRENT AND ACCRUED ASSETS Schedule VIII 13
MISCELLANEOUS DEFERRED DEBITS Schedule IX 14
RESEARCH, DEVELOPMENT, OR DEMONSTRATION
EXPENDITURES Schedule X 15
PROPRIETARY CAPITAL Schedule XI 16
LONG-TERM DEBT Schedule XII 17
CURRENT AND ACCRUED LIABILITIES Schedule XIII 18
NOTES TO FINANCIAL STATEMENTS Schedule XIV 19
COMPARATIVE INCOME STATEMENT Schedule XV 20
ANALYSIS OF BILLING - ASSOCIATE COMPANIES Account 457 21
ANALYSIS OF BILLING - NONASSOCIATE COMPANIES Account 458 22
ANALYSIS OF CHARGES FOR SERVICE - ASSOCIATE
AND NONASSOCIATE COMPANIES Schedule XVI 23
SCHEDULE OF EXPENSE BY DEPARTMENT OR
SERVICE FUNCTION Schedule XVII 24-25
DEPARTMENTAL ANALYSIS OF SALARIES Account 920 26
OUTSIDE SERVICES EMPLOYED Account 923 27
EMPLOYEE PENSIONS AND BENEFITS Account 926 28
GENERAL ADVERTISING EXPENSES Account 930.1 29
MISCELLANEOUS GENERAL EXPENSES Account 930.2 30
RENTS Account 931 31
TAXES OTHER THAN INCOME TAXES Account 408 32
DONATIONS Account 426.1 33
OTHER DEDUCTIONS Account 426.5 34
NOTES TO STATEMENT OF INCOME Schedule XVIII 35
FINANCIAL DATA SCHEDULE Schedule XIX 36
ORGANIZATION CHART 37
METHODS OF ALLOCATION 38
ANNUAL STATEMENT OF COMPENSATION FOR USE 39
OF CAPITAL BILLED
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1998
SCHEDULE I - COMPARATIVE BALANCE SHEET
Give balance sheet of the Company as of December 31 of the current and prior
year.
ACCOUNT ASSETS AND OTHER DEBITS AS OF DECEMBER 31
CURRENT PRIOR
SERVICE COMPANY PROPERTY
101 Service company property (Schedule II) 5,371,304 4,766,665
107 Construction work in progress (Schedule II) 0 0
Total Property 5,371,304 4,766,665
108 Less accumulated provision for depreciation
and amortization of service company
property (Schedule III) 2,670,176 1,769,333
Net Service Company Property 2,701,128 2,997,332
INVESTMENTS
123 Investments in associate companies (Schedule IV) 0 0
124 Other investments (Schedule IV) 0 0
Total investments 0 0
CURRENT AND ACCRUED ASSETS
131 Cash 537,413 487,562
134 Special deposits 0 0
135 Working funds 6,000 6,000
136 Temporary cash investments (Schedule IV) 0 0
141 Notes receivable 0 0
143 Accounts receivable 221,825 113,241
144 Accumulated provision for uncollectable
accounts 0 0
146 Accounts receivable from associate
companies (Schedule V) 1,656,544 2,032,757
152 Fuel stock expense undistributed (Schedule VI) 0 0
154 Materials and supplies 0 0
163 Stores expense undistributed (Schedule VII) 0 0
165 Prepayments 66,259 63,158
174 Miscellaneous current and accrued
assets (Schedule VIII) 0 0
Total Current and Accrued Assets 2,488,041 2,702,718
DEFERRED DEBITS
181 Unamortized debt expense 0 0
184 Clearing accounts 6,788 251,770
186 Miscellaneous deferred debits (Schedule IX) 1,636,028 1,036,457
188 Research, development, or demonstration
expenditures (Schedule X) 0 0
190 Accumulated deferred income tax 0 0
Total Deferred Debits 1,642,816 1,288,227
TOTAL ASSETS AND OTHER DEBITS 6,831,985 6,988,277
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1998
SCHEDULE I - COMPARATIVE BALANCE SHEET
ACCOUNT LIABILITIES AND PROPRIETARY CAPITAL AS OF DECEMBER 31
CURRENT PRIOR
PROPRIETARY CAPITAL
201 Common stock issued (Schedule XI) 1,000 1,000
211 Miscellaneous paid-in-capital (Schedule XI) 0 0
215 Appropriated retained earnings (Schedule XI) 0 0
216 Unappropriated retained earnings (Schedule XI) 1,688 1,688
Total Proprietary Capital 2,688 2,688
LONG-TERM DEBT
223 Advances from associate companies (Schedule XII) 0 0
224 Other long-term debt (Schedule XII) 0 0
225 Unamortized premium on long- term debt 0 0
226 Unamortized discount on long-term debt-debit 0 0
Total Long-Term Debt 0 0
227 Obligations under capital leases - non-current 1,942,147 2,233,598
CURRENT AND ACCRUED LIABILITIES
231 Notes payable 0 0
232 Accounts payable 636,931 666,092
233 Notes payable to associate
companies (Schedule XIII) 2,424,099 1,816,986
234 Accounts payable to associate
companies (Schedule XIII) 425,804 1,452,443
236 Taxes accrued (144,013) 35,932
237 Interest accrued 48,826 0
238 Dividends declared 0 0
241 Tax collections payable 0 0
242 Miscellaneous current and accrued
liabilities (Schedule XIII) 1,539,132 748,570
243 Obligations under capital leases - current 754,544 752,887
Total Current and Accrued Liabilities 5,685,323 5,472,910
DEFERRED CREDITS
253 Other deferred credits 0 0
255 Accumulated deferred investment tax credits 0 0
Total Deferred Credits 0 0
282 ACCUMULATED DEFERRED INCOME TAXES (798,173) (720,919)
TOTAL LIABILITIES AND PROPRIETARY CAPITAL 6,831,985 6,988,277
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1998
SCHEDULE II - SERVICE COMPANY PROPERTY
BALANCE AT RETIREMENTS OTHER BALANCE
BEGINNING ADDITIONS OR CHANGES 1/ AT CLOSE
DESCRIPTION OF YEAR SALES OF YEAR
SERVICE COMPANY PROPERTY
Account
301 ORGANIZATION
303 MISCELLANEOUS
INTANGIBLE PLANT
304 LAND AND LAND RIGHTS `
305 STRUCTURES AND
IMPROVEMENTS
306 LEASEHOLD
IMPROVEMENTS
307 EQUIPMENT 2/ 3,723,256 550,317 0 0 4,273,573
308 OFFICE FURNITURE
AND EQUIPMENT 1,028,232 54,323 0 0 1,082,555
309 AUTOMOBile
OTHER
VEHICLES AND
RELATED GARAGE
EQUIPMENT 15,176 21,020 (21,020) 0 15,176
310 AIRCRAFT AND
AIRPORT EQUIPMENT
311 OTHER SERVICE
COMPANY
PROPERTY 3/
SUB-TOTAL 4,766,665 625,659 (21,020) 0 5,371,304
107 CONSTRUCTION
WORK IN
PROGRESS
TOTAL 4,766,665 625,659 (21,020) 0 5,371,304
1/ PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
NONE
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1998
SCHEDULE II - CONTINUED
2/ SUBACCOUNTS ARE REQUIRED FOR EACH CLASS OF EQUIPMENT OWNED. THE SERVICE
COMPANY SHALL PROVIDE A LISTING BY SUBACCOUNT OF EQUIPMENT ADDITIONS
DURING THE YEAR AND THE BALANCE AT THE CLOSE OF THE YEAR:
BALANCE AT
SUBACCOUNT DESCRIPTION ADDITIONS CLOSE OF
YEAR
Computer 380,404 3,532,685
PBX Phone System 169,913 740,888
TOTAL 550,317 4,273,573
3/ DESCRIBE OTHER SERVICE COMPANY PROPERTY:
NONE
4/ DESCRIBE CONSTRUCTION WORK IN PROGRESS:
NONE
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1998
SCHEDULE III
ACCUMULATED PROVISION FOR DEPRECIATION AND
AMORTIZATION OF SERVICE COMPANY PROPERTY
BALANCE AT ADDITIONS OTHER BALANCE
BEGINNING CHARGED CHANGES AT CLOSE
DESCRIPTION OF YEAR TO ACCOUNT RETIRE- ADD OF YEAR
403 MENTS (DEDUCT)1/
Account
301 ORGANIZATION
303 MISCELLANEOUS
INTANGIBLE PLANT
304 LAND AND LAND
RIGHTS
305 STRUCTURES AND
IMPROVEMENTS
306 LEASEHOLD
IMPROVEMENTS
307 EQUIPMENT 1,629,918 743,640 0 0 2,373,558
308 OFFICE FURNITURE
AND EQUIPMENT 144,488 152,145 0 0 296,633
309 AUTOMOBILES,
OTHER
VEHICLES AND
RELATED GARAGE
EQUIPMENT (5,073) 26,078 (21,020) 0 (15)
310 AIRCRAFT AND
AIRPORT EQUIPMENT
311 OTHER SERVICE
COMPANY PROPERTY
TOTAL 1,769,333 921,863 (21,020) 0 2,670,176
1/ PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1998
SCHEDULE IV - INVESTMENTS
INSTRUCTIONS: Complete the following schedule concerning investments.
Under Account 124 "Other Investments" state each investment
separately, with description, including, the name of issuing
company, number of shares or principal amount
Under Account 136, "Temporary Cash Investments", list each
investment separately.
BALANCE AT BALANCE AT
DESCRIPTION BEGINNING CLOSE
OF YEAR OF YEAR
ACCOUNT 123 - INVESTMENT IN ASSOCIATED COMPANIES 0 0
ACCOUNT 124 - OTHER INVESTMENTS 0 0
ACCOUNT 136 - TEMPORARY CASH INVESTMENTS 0 0
TOTAL 0 0
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1998
SCHEDULE V - ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES
INSTRUCTIONS: Complete the following schedule listing accounts receivable
from each associate company. Where the service company has
provided accommodation or convenience payments for associate
companies, a separate listing of total payments for each
associate company by subaccount should be provided.
BALANCE AT BALANCE AT
DESCRIPTION BEGINNING CLOSE
OF YEAR OF YEAR
ACCOUNT 146 - ACCOUNTS RECEIVABLE FROM ASSOCIATE
Companies
Concord Electric Company 399,447 270,789
Exeter & Hampton Electric Company 383,034 277,879
Fitchburg Gas and Electric Light Company 873,277 733,193
UNITIL Power Corp. 360,910 350,090
UNITIL Realty Corp. 2,613 12,712
UNITIL Corporation 0 5,049
UNITIL Resources, Inc. 13,476 6,832
TOTAL 2,032,757 1,656,544
ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS:
Concord Electric Company 85,094
Exeter & Hampton Electric Company 89,601
Fitchburg Gas and Electric Light Company 659,416
UNITIL Power Corp. 353,738
UNITIL Realty Corp. 31,089
UNITIL Resources, Inc. 21,390
UNITIL Corp. 133
For detail of convenience payments by type and company, paid
by Unitil Service Corp. see following table.
TOTAL PAYMENTS 1,240,461
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31,1998
CONVENIENCE PAYMENTS BY TYPE AND COMPANY
CECo E&H FG&E UPC
Legal $53,969 $58,734 $620,749 $330,984
Audit 31,125 30,866 38,667 22,754
$ 85,094 $89,601 $659,416 $353,738
CONVENIENCE PAYMENTS BY TYPE AND COMPANY (Cont.)
URI URC UC Total
Legal $21,257 $25,323 0 1,111,016
Audit 133 5,766 133 129,445
$21,390 $31,089 133 $1,240,461
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1998
SCHEDULE VI - FUEL STOCK EXPENSES UNDISTRIBUTED
INSTRUCTIONS: Report the amount of labor and expenses incurred with respect
to fuel stock expense during the year and indicate amount
attributable to each associate company. Under the section
headed "Summary" listed below give an overall report of the
fuel functions performed by the service company.
DESCRIPTION LABOR EXPENSE TOTAL
ACCOUNT 152 - FUEL STOCK EXPENSE UNDISTRIBUTED 0 0 0
TOTAL 0 0 0
SUMMARY:
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1998
SCHEDULE VII - STORES EXPENSE UNDISTRIBUTED
INSTRUCTIONS: Report the amount of labor and expenses incurred with respect
to stores expense during the year and indicate amount
attributable to each associate company.
DESCRIPTION LABOR EXPENSE TOTAL
ACCOUNT 163 - STORES EXPENSE UNDISTRIBUTED 0 0 0
TOTAL 0 0 0
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1998
SCHEDULE VIII
MISCELLANEOUS CURRENT AND ACCRUED ASSETS
INSTRUCTIONS: Provide detail of items in this account. Items less
than $10,000 may be grouped, showing the number of
items in each group.
BALANCE AT BALANCE AT
DESCRIPTION BEGINNING CLOSE
OF YEAR OF YEAR
ACCOUNT 174 - MISCELLANEOUS CURRENT AND
ACCRUED ASSETS 0 0
TOTAL 0 0
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1998
SCHEDULE IX - MISCELLANEOUS DEFERRED DEBITS
INSTRUCTIONS: Provide detail of items in this account. Items less
than $10,000 may be grouped by class showing the number
of items in each class.
BALANCE AT BALANCE AT
DESCRIPTION BEGINNING CLOSE
OF YEAR OF YEAR
ACCOUNT 186 - MISCELLANEOUS DEFERRED DEBITS
Under/(over) collected administrative expenses 59,822 7,637
Postage 23,856 69,343
PC purchases 12,848 3,537
Software Costs 939,932 1,555,511
TOTAL 1,036,458 1,636,028
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1998
SCHEDULE X
RESEARCH, DEVELOPMENT OR DEMONSTRATION EXPENDITURES
INSTRUCTIONS: Provide a description of each material research,
development, or demonstration project which incurred
costs by the service corporation during the year.
BALANCE AT
DESCRIPTION CLOSE
OF YEAR
ACCOUNT 188 - RESEARCH, DEVELOPMENT OR
DEMONSTRATION EXPENDITURES 0
TOTAL 0
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1998
SCHEDULE XI - PROPRIETARY CAPITAL
PAR OR OUTSTANDING
NUMBER OF STATED CLOSE OF PERIOD
ACCOUNT NUMBER CLASS OF SHARES VALUE NO. OF TOTAL
STOCK AUTHORIZED PER SHARE SHARES AMOUNT
201 COMMON STOCK ISSUED 300 10.00 100 1,000
INSTRUCTIONS: Classify amounts in each account with brief explanation,
disclosing the general nature of transactions which gave rise to the
reported amounts.
DESCRIPTION AMOUNT
ACCOUNT 211 - MISCELLANEOUS PAID-IN CAPITAL 0
ACCOUNT 215 - APPROPRIATED RETAINED EARNINGS 0
TOTAL 0
INSTRUCTIONS: Give particulars concerning net income or (loss) during the
year, distinguishing between compensation for the use of capital owned or
net loss remaining from servicing nonassociates per the General Instructions
of the Uniform System of Accounts. For dividends paid during the year in
cash or otherwise, provide rate percentage, amount of dividend, date declared
and date paid.
BALANCE AT NET INCOME BALANCE AT
DESCRIPTION BEGINNING OR DIVIDENDS CLOSE
OF YEAR (LOSS) PAID OF YEAR
ACCOUNT 216 -
UNAPPROPRIATED RETAINED
EARNINGS 1,688 0 0 1,688
TOTAL 1,688 0 0 1,688
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1998
SCHEDULE XII - LONG-TERM DEBT
INSTRUCTIONS:Advances from associate companies should be reported separately
for advances on notes, and advances on open account. Names of associate
companies from which advances were received shall be shown under the class
and series of obligation column. For Account 224 - Other long-term debt
provide the name of creditor company or organization, terms of the obligation,
date of maturity, interest rate, and the amount authorized and outstanding.
TERMS OF
OBLIG CLASS DATE BALANCE
NAME OF & SERIES OF INT. AMT. 1/ AT CLOSE
CREDITOR OF OBLIGATION MAT. RATE AUTH. ADD. DED. OF YEAR
ACCOUNT 223 - ADVANCES
FROM ASSOCIATE COMPANIES 0 0 0 0
ACCOUNT 224 - OTHER LONG-TERM DEBT: 0 0 0 0
TOTAL 0 0 0 0
1/ GIVE AN EXPLANATION OF DEDUCTIONS:
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1998
SCHEDULE XIII - CURRENT AND ACCRUED LIABILITIES
Provide balance of notes and accounts payable to each associate
company. Give description and amount of miscellaneous current
and accrued liabilities. Items less than $10,000 may be
grouped, showing the number of items in each group.
BALANCE AT BALANCE AT
DESCRIPTION BEGINNING CLOSE
OF YEAR OF YEAR
ACCOUNT 233 - NOTES PAYABLE TO
ASSOCIATE COMPANIES
Money Pool 1,816,986 2,424,099
TOTAL 1,816,986 2,424,099
ACCOUNT 234 - ACCOUNTS PAYABLE TO ASSOCIATE
COMPANIES
Concord Electric Company 0 (83,469)
Exeter & Hampton Electric Company 88,580 (65,370)
Fitchburg Gas and Electric Company 41,396 (373,904)
UNITIL Corporation (1) 1,321,602 1,081,034
UNITIL Power Corporation 865 (129,106)
UNITIL Realty Corporation 0 (1,425)
UNITIL Resources, Inc. 0 (1,955)
(1) Balance consists of KESOP for UNITIL
Service Employees only, not subsidaries.
TOTAL 1,452,443 425,804
ACCOUNT 242 - MISCELLANEOUS CURRENT
AND ACCRUED LIABILITIES
Accrued FASB 87 200,616 517,943
Accrued Supplemental Executive Retirement Plan 363,655 439,846
Accrued Legal Fees 3,043 973
Accrued Annual Report 54,495 53,100
Accrued FASB 106 65,117 87,805
Accrued FASB 106 - APBO (2,489) 2,421
Accrued FASB 106 - Gain/Loss (1,649) (1,649)
Accrued Interest on Escrow 23,435 0
Accrued Auditing 0 2,700
Accrued Compensation 0 407,000
Accrued Miscellaneous Costs 42,347 28,993
TOTAL 748,570 1,539,132
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1998
SCHEDULE XIV
NOTES TO FINANCIAL STATEMENT
INSTRUCTIONS: The space below is provided for important notes regarding the
financial statements or any account thereof. Furnish particulars
as to any significant contingent assets or liabilities existing
at the end of the year. Notes relating to financial statements
shown elsewhere in this report may be indicated here by reference.
Selected Notes to the Financial Statements:
UNITIL Service Corp. (USC), a wholly-owned subsidiary of UNITIL Corporation,
a public utility holding company, provides centralized support services to
the parent company and its subsidiaries. USC is subject to the jurisdiction
of the Securities and Exchange Commission (SEC) under the Public Utility
Holding Company Act of 1935. Accordingly, USC maintains its books of
account as prescribed by the "Uniform System of Accounts for Mutual Service
Companies and Subsidiary Service Companies" as Amended February 2, 1979
to be effective January 1, 1980. USC prepares its financial statements in
conformity with generally accepted accounting principles.
Please refer to the 1998 UNITIL Corporation Form 10-K for additional
disclosures.
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1998
SCHEDULE XV
STATEMENT OF INCOME
ACCOUNT DESCRIPTION CURRENT PRIOR
YEAR YEAR
INCOME
457 Services rendered to associate companies 17,003,091 12,935,280
458 Services rendered to nonassociate
companies 30,000 30,000
419 Interest Income 0 539
421 Miscellaneous income or loss (18,685) 10,830
Total Income 17,014,406 12,976,649
EXPENSE
920 Salaries and wages 8,023,133 5,914,082
921 Office supplies and expenses 968,711 812,299
922 Administrative expense transferred -
credit 52,185 (51,631)
923 Outside services employed 1,495,119 863,769
924 Property insurance 2,851 3,524
925 Injuries and damages 28,135 27,449
926 Employee pensions and benefits 1,656,941 1,404,858
928 Regulatory commission expense 0 0
930.1 General advertising expense 449,561 775,607
930.2 Miscellaneous general expense 366,986 (59,604)
931 Rents 1,666,467 1,482,496
932 Maintenance of structures and
equipment 488,204 337,676
403 Depreciation and amortization expense 903,178 785,609
408 Taxes other than income taxes 551,633 402,731
409 Income taxes 95,666 53,612
410 Provision for deferred income taxes (77,254) (53,727)
411 Provision for deferred income taxes -
credit 0 0
411.5 Investment tax credit 0 0
426.1 Donations 24,822 5,046
426.5 Other deductions 0 18
427 Interest on long-term debt 0 0
430 Interest on debt to associate
companies 57,442 43,446
431 Other interest expense 260,626 229,390
Total Expense 17,014,406 12,976,649
Net Income or (Loss) 0 0
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1998
ANALYSIS OF BILLING
ASSOCIATE COMPANIES
ACCOUNT 457
DIRECT INDIRECT COMPENSATION TOTAL
COSTS COSTS FOR USE AMOUNT
NAME OF ASSOCIATE CHARGED CHARGED OF CAPITAL BILLED
COMPANY 457-1 457-2 457-3
Concord Electric Company 1,384,374 1,517,136 0 2,901,510
Exeter & Hampton Electric
Company 1,337,906 1,461,992 0 2,799,898
Fitchburg Gas and Electric
Light Company 3,602,880 3,953,422 0 7,556,302
UNITIL Power Corp. 1,675,876 1,855,974 0 3,531,850
UNITIL Realty Corp. 31,093 32,951 0 64,044
UNITIL Resources, Inc. 59,745 89,742 0 149,487
TOTAL 8,091,874 8,911,217 0 17,003,091
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1998
ANALYSIS OF BILLING
NONASSOCIATE COMPANIES
ACCOUNT 458
DIRECT INDIRECT COMPENSATION EXCESS
NAME OF COSTS COSTS FOR USE TOTAL OR TOTAL
NONASSOC CHARGED CHARGED OF CAPITAL DEFICIENCY AMOUNT
COMPANY 457-1 457-2 457-3 COST 458-4 BILLED
UNITIL Retiree
Trust 0 30,000 30,000 0 30,000
Total 0 30,000 0 30,000 0 30,000
INSTRUCTION: Provide a brief description of the services rendered to each
nonassociate company.
UNITIL Retiree Trust - Professional services provided.
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1998
SCHEDULE XVI
ANALYSIS OF CHARGES FOR SERVICE
ASSOCIATE AND NONASSOCIATE COMPANIES
ASSOCIATE COMPANY CHARGES
DESCRIPTION OF ITEMS DIRECT INDIRECT
COST COST TOTAL
920 SALARIES AND WAGES 6,934,336 1,058,797 7,993,133
921 OFFICE SUPPLES AND EXPENSES 94,352 874,360 968,711
922 ADMIN EXPENSE TRANS-CREDIT 52,185 52,185
923 OUTSIDE SERVICES EMPLOYED 144,860 1,350,259 1,495,119
924 PROPERTY INSURANCE 2,851 2,851
925 INJURIES AND DAMAGES 28,135 28,135
926 EMPLOYEE PENSIONS AND BENEFITS 1,656,941 1,656,941
928 REGULATORY COMMISSION EXPENSE 0 0
930.1 GENERAL ADVERTISING EXPENSE 449,561 449,561
930.2 MISC. GENERAL EXPENSE 366,986 366,986
931 RENTS 0 1,666,467 1,666,467
932 MAINT. OF STRUCT. & EQUIP. 918,326 (430,122) 488,204
403 DEPR. AND AMORT. EXPENSE 903,178 903,178
408 TAXES OTHER THAN INCOME 551,633 551,633
409 INCOME TAXES 95,666 95,666
410 PROV FOR DEF INC TAXES (77,254) (77,254)
411 PROV FOR DEF INC TAX CREDIT 0
411.5 INVESTMENT TAX CREDIT 0
419 INTEREST INCOME 18,685 18,685
426.1 DONATIONS 24,822 24,822
426.5 OTHER DEDUCTIONS 0 0
427 INTEREST ON LONG-TERM DEBT 0
431 OTHER INTEREST EXPENSE 260,626 260,626
INSTRUCTION: Total cost of service will equal
for associate and nonassociate companies
the total amount billed under their separate
analysis of billing schedules.
SUBTOTAL EXPENSES 8,091,874 8,853,775 16,945,649
COMPENSATION FOR USE OF EQUITY CAPITAL 0
430 INTEREST ON DEBT TO ASSOCIATE CO.'S 0 57,442 57,442
TOTAL EXPENSES 8,091,874 8,911,217 17,003,091
421 MISCELLANEOUS INCOME 0 (18,685) (18,685)
TOTAL COST OF SERVICE 8,091,874 8,892,532 16,984,406
SCHEDULE XVI CONT.
ANALYSIS OF CHARGES FOR SERVICE
ASSOCIATE AND NONASSOCIATE COMPANIES
NONASSOCIATE COMPANY CHARGES
DESCRIPTION OF ITEMS DIRECT INDIRECT
COST COST TOTAL
920 SALARIES AND WAGES 30,000 30,000
921 OFFICE SUPPLES AND EXPENSES 0
922 ADMIN EXPENSE TRANS-CREDIT 0
923 OUTSIDE SERVICES EMPLOYED 0
924 PROPERTY INSURANCE 0
925 INJURIES AND DAMAGES 0
926 EMPLOYEE PENSIONS AND BENEFITS 0
928 REGULATORY COMMISSION EXPENSE 0
930.1 GENERAL ADVERTISING EXPENSE 0
930.2 MISC. GENERAL EXPENSE 0
931 RENTS 0
932 MAINT. OF STRUCT. & EQUIP. 0
403 DEPR. AND AMORT. EXPENSE 0
408 TAXES OTHER THAN INCOME 0
409 INCOME TAXES 0
410 PROV FOR DEF INC TAXES 0
411 PROV FOR DEF INC TAX CREDIT 0
411.5 INVESTMENT TAX CREDIT 0
419 INTEREST INCOME 0
426.1 DONATIONS 0
426.5 OTHER DEDUCTIONS 0
427 INTEREST ON LONG-TERM DEBT 0
431 OTHER INTEREST EXPENSE 0
INSTRUCTION: Total cost of service will equal
for associate and nonassociate companies
the total amount billed under their separate
analysis of billing schedules.
SUBTOTAL EXPENSES 0 30,000 30,000
COMPENSATION FOR USE OF EQUITY CAPITAL 0
430 INTEREST ON DEBT TO ASSOCIATE CO.'S 0 0 0
TOTAL EXPENSES 0 30,000 30,000
421 MISCELLANEOUS INCOME 0 0 0
TOTAL COST OF SERVICE 0 30,000 30,000
SCHEDULE XVI CONT.
ANALYSIS OF CHARGES FOR SERVICE
ASSOCIATE AND NONASSOCIATE COMPANIES
TOTAL CHARGES FOR SERVICE
DESCRIPTION OF ITEMS DIRECT INDIRECT
COST COST TOTAL
920 SALARIES AND WAGES 6,934,336 1,088,797 8,023,133
921 OFFICE SUPPLES AND EXPENSES 94,352 874,360 968,711
922 ADMIN EXPENSE TRANS-CREDIT 0 52,185 52,185
923 OUTSIDE SERVICES EMPLOYED 144,860 1,350,259 1,495,119
924 PROPERTY INSURANCE 0 2851 2,851
925 INJURIES AND DAMAGES 0 28,135 28,135
926 EMPLOYEE PENSIONS AND BENEFITS 0 1,656,941 1,656,941
928 REGULATORY COMMISSION EXPENSE 0 0 0
930.1 GENERAL ADVERTISING EXPENSE 0 449,561 449,561
930.2 MISC. GENERAL EXPENSE 0 366,986 366,986
931 RENTS 0 1,666,467 1,666,467
932 MAINT. OF STRUCT. & EQUIP. 918,326 (430,122) 488,204
403 DEPR. AND AMORT. EXPENSE 0 903,178 903,178
408 TAXES OTHER THAN INCOME 0 551,633 551,633
409 INCOME TAXES 0 95,666 95,666
410 PROV FOR DEF INC TAXES 0 (77,254) (77,254)
411 PROV FOR DEF INC TAX CREDIT 0 0 0
411.5 INVESTMENT TAX CREDIT 0 0 0
419 INTEREST INCOME 0 18,685 18,685
426.1 DONATIONS 0 24,822 24,822
426.5 OTHER DEDUCTIONS 0 0 0
427 INTEREST ON LONG-TERM DEBT 0 0 0
431 OTHER INTEREST EXPENSE 0 260,626 260,626
INSTRUCTION: Total cost of service will equal
for associate and nonassociate companies
the total amount billed under their separate
analysis of billing schedules.
SUBTOTAL EXPENSES 8,091,874 8,883,775 16,975,649
COMPENSATION FOR USE OF EQUITY CAPITAL 0
430 INTEREST ON DEBT TO ASSOCIATE CO.'S 0 57,442 57,442
TOTAL EXPENSES 8,091,874 8,941,217 17,033,091
421 MISCELLANEOUS INCOME 0 (18,685) (18,685)
TOTAL COST OF SERVICE 8,091,874 8,922,532 17,014,406
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1998
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
DEPARTMENT OR
SERVICE FUNCTION
DESCRIPTION OF ITEMS TOTAL OVER- MARKET
AMOUNT HEAD PRICING ADMIN.
920 SALARIES AND WAGES 8,023,133 956,619 647,205
921 OFFICE SUPPLES AND EXPENSES 968,711 70,179 272,971
922 ADMIN. EXPENSE TRANS-CREDIT 52,185
923 OUTSIDE SERVICES EMPLOYED 1,495,119 80,782 14,560
924 PROPERTY INSURANCE 2,851
925 INJURIES AND DAMAGES 28,135
926 EMPLOYEE PENSIONS AND BENEFITS 1,656,941 15,235 8,030
928 REGULATORY COMMISSION EXPENSE 0
930.1 GENERAL ADVERTISING EXPENSE 449,561 421,601 27,945
930.2 MISC. GENERAL EXPENSE 366,986
931 RENTS 1,666,467 1,718,333
932 MAINT. OF STRUCT. & EQUIP. 488,204 322,857
403 DEPR. AND AMORT. EXPENSE 903,178
408 TAXES OTHER THAN INCOME 551,633
409 INCOME TAXES 95,666
410 PROV. FOR DEF. INC. TAXES (77,254)
411 PROV. FOR DEF. INC. TAX CREDIT 0
411.5 INVESTMENT TAX CREDIT 0
426.1 DONATIONS 24,822
426.5 OTHER DEDUCTIONS 0
427 INTEREST ON LONG-TERM DEBT 0
430 INTEREST ON DEBT TO ASSOCIATE
COMPANIES 57,442
431 OTHER INTEREST EXPENSE 260,626
INSTRUCTIONS: Indicate each
department or
service function. (see Instruction
01-3 General Structure of Account-
ing System Uniform System Account.
TOTAL EXPENSES - 17,014,406 1,544,416 3,011,902
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1998
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
DEPARTMENT OR SERVICE FUNCTION
ACCOUNT ENERGY CUSTOMER
NUMBER ACCOUNTING RESOURCES DISTRIBUTION FINANCE AFFAIRS ENGINEER. TECHNOLOGY
920 873,927 920,885 257,962 1,538,446 1,304,707 1,091,920 431,462
921 66,066 64,936 3,055 52,982 148,239 113,881 176,402
922 52,185
923 10,250 129,981 461,631 408,123 338,962 32,660 18,170
924 2,851
925 28,135
926 14,802 5,843 1,598,708 10,860 1,480 1,982
928
930.1 15
930.2 (130) 55,349 292,937 18,830
931 (1,121,017) 240 6,171 15,084 259,181 4,140 784,335
932 19,884 21,108 75,601 552 48,202
403 903,178
408 551,633
409 95,666
410 (77,254)
411
411.5
426.1 24,822
426.5 0
427
430 57,442
431 260,626
1,414,012 1,177,249 728,819 4,276,442 2,156,380 1,244,633 1,460,553
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1998
DEPARTMENTAL ANALYSIS OF SALARIES
ACCOUNT 920
DEPARTMENT SALARY EXPENSE NUMBER
NAME OF DEPARTMENT INCLUDE IN AMOUNTS BILLED TO PERSONNEL
Indicate each departmentTOTAL PARENT OTHER NON END OF
or service function AMOUNT COMPANY ASSOCIATES ASSOCIATES YEAR
Market Pricing 1,085,076 0 1,085,076 0 22
Technology 431,462 0 431,462 0 11
Accounting 873,927 0 869,127 4,800 22
Finance 665,681 0 665,081 600 9
Administrative 1,519,970 0 1,496,270 23,700 15
Energy Resources 792,428 0 792,428 0 9
Engineering 1,091,920 0 1,091,920 0 21
Distribution 257,962 0 257,962 0 1
Customer Affairs 1,304,707 0 1,303,807 900 39
TOTAL 8,023,133 0 7,993,133 30,000 149
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1998
OUTSIDE SERVICES EMPLOYED
ACCOUNT 923
INSTRUCTIONS: Provide a breakdown by subaccount of outside services employed.
If the aggregate amounts paid to any one payee and included within
one subaccount is less than $25,000, only the aggregate number
and amount of all such payments included within the subaccount
need be shown. Provide a subtotal for each type of service.
RELATIONSHIP
"A"= ASSOCIATE
FROM WHOM PURCHASED ADDRESS "NA"=NON AMOUNT
ASSOCIATE
Outside Services - Legal
Various NA 46,402
Outside Services - Accounting
Various NA 2,700
Outside Services - Other
Various NA 355,799
Accountemps NA 55,942
H.T.E. Inc. NA 75,901
Kelly Services NA 181,850
George Beram & Co. Inc. NA 40,667
The Hay Group NA 106,794
Russell Reynolds NA 152,775
Best Western NA 85,660
McPherson Associates NA 213,822
New England Conference Center NA 109,461
Outside Services - Market Development
Various NA 24,318
Outside Services - Visibility
Various NA 43,027
TOTAL 1,495,119
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1998
EMPLOYEE PENSIONS AND BENEFITS
ACCOUNT 926
INSTRUCTIONS: Provide a listing of each pension plan and benefit
program provided by the service company. Such
listing should be limited to $25,000.
DESCRIPTION AMOUNT
Health Insurance 719,766
Net Periodic Pension Expense 317,327
401 K 149,197
Life Insurance 95,896
Education 58,895
Other 173,767
Supplemental Executive Retirement Plan 114,496
FASB 106 27,598
TOTAL 1,656,941
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1998
GENERAL ADVERTISING EXPENSES
ACCOUNT 930.1
INSTRUCTIONS: Provide a listing of the amounts included in Account
930.1 "General Advertising Expenses", classifying the items according to the
nature of the advertising and as defined in the account definition. If a
particular class includes an amount in excess of $3,000 applicable to a
single payee, show separately the name of the payee and the aggregate amount
applicable thereto.
DESCRIPTION NAME OF PAYEE AMOUNT
Recruiting David Wilson Associates 27,945
Advertising Luma & Cahill 51,192
Advertising Ingalls Advertising 258,596
Advertising Saint Bani Press 51,063
Advertising Network Publishers 5,900
Advertising RAM Printing 3,268
Advertising Other 51,597
TOTAL 449,561
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1998
MISCELLANEOUS GENERAL EXPENSES
ACCOUNT 930.2
INSTRUCTIONS: Provide a listing of the amount included in Account 930.02
"Miscellaneous General Expense", classifying such expenses
according to their nature. Payments and expenses permitted by
Section 321 (b) (2) of the Federal Election Campaign Act, as
amended by Public Law 94-283 in 1976 (2 U.S.C. 441 (b) (2)
shall be separately classified.
DESCRIPTION AMOUNT
Printing and Distribution of
Quarterly and Annual Reports 140,223
Employee Orientations 35,152
Director's Fees and Expenses 191,611
TOTAL 366,986
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1998
RENTS
ACCOUNT 931
INSTRUCTIONS: Provide a listing of the amount included in Account 931,
"Rents" classifying such expenses by major groupings of property, as
defined in the account definition of the Uniform System of Accounts.
TYPE OF PROPERTY AMOUNT
Office Building 1,480,155
EDP Equipment 122,079
Miscellaneous 64,234
TOTAL 1,666,468
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1998
TAXES OTHER THAN INCOME TAXES
ACCOUNT 408
INSTRUCTIONS: Provide an analysis of Account 408, "Taxes Other Than Income
Taxes". Separate the analysis into two groups: (1) other than
U. S. Government and (2) U.S. Government taxes. Specify
each of the various kinds of taxes and show the amounts there of.
Provide a subtotal for each class of tax.
KIND OF TAX AMOUNT
Other than U.S. Government Tax:
State Telephone & Telegram Tax 11,386
State Unemployment Tax - NH 2,967
Other 24
14,376
U.S. Government Tax:
Federal Telephone & Telegram Tax 5,393
Federal Insurance Contribution Act 522,180
Federal Unemployment Tax 9,684
537,257
TOTAL 551,633
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1998
DONATIONS
ACCOUNT 426.1
INSTRUCTIONS: Provide a listing of the amount included in Account 426.1,
"Donations", classifying such expenses by its purpose. The
aggregate number and amount of all items of less than $3,000
may be shown in lieu of details.
NAME OF RECIPIENT PURPOSE OF DONATION AMOUNT
Memorial Fund 10,000
Aggregate 14,822
TOTAL 24,822
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1998
OTHER DEDUCTIONS
ACCOUNT 426.5
INSTRUCTIONS: Provide a listing of the amount included in Account 426.5,
"Other Deductions", classifying such expenses according to
their nature.
DESCRIPTION NAME OF PAYEE AMOUNT
None
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1998
SCHEDULE XVIII
NOTES TO STATEMENT OF INCOME
INSTRUCTIONS: The space below is provided for important notes regarding
the statement of income or any account thereof. Furnish particulars as to
any significant increases in services rendered or expenses incurred during
the year. Notes relating to financial statements shown elsewhere in this
report may be indicated here by reference.
See page 19.
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1998
SCHEDULE XIX - FINANCIAL DATA SCHEDULE
ITEM NO. CAPTION HEADING AMOUNT
1 Net Service Company Property 2,701,128
2 Total Investments 0
3 Total Current and Accrued Assets 2,488,041
4 Total Deferred Debits 1,642,816
5 Balancing Amount for Total Assets and Other Debits 0
6 Total Assets and Other Debits 6,831,985
7 Total Proprietary Capital 2,688
8 Total Long-Term Debt 0
9 Notes Payable 0
10 Notes Payable to Associate Companies 2,424,099
11 Balancing Amount for Total Current and Accrued Liabilities 3,261,224
12 Total Deferred Credits 0
13 Accumulated Deferred Income Taxes (798,173)
14 Total Liabilities and Proprietary Capital 6,831,985
15 Service Rendered to Associate Companies 17,003,091
16 Service Rendered to Nonassociate Companies 30,000
17 Miscellaneous Income or Loss (18,685)
18 Total Income 17,014,406
19 Salaries and Wages 8,023,133
20 Employee Pensions and Benefits 1,656,941
21 Balancing Amount for Total Expenses 7,334,332
22 Total Expenses 17,014,406
23 Net Income (Loss) 0
24 Total Expenses (Direct Costs) 8,091,874
25 Total Expenses (Indirect Costs) 8,922,532
26 Total Expenses (Total) 17,014,406
27 Number of Personnel End of Year 149
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1998
ORGANIZATION CHART AS OF DECEMBER 31, 1998
Chairman and Chief Executive Officer Schoenberger
Senior Vice President - Finance Baratta
Senior Executive Vice President - Energy Distribution Dalton
Vice President - Engineering and Operations Appleton
Senior Executive Vice President - Energy Markets Daly
Vice President - Sales and Marketing Black
Vice President - Energy Procurement Foote
Vice President - Technology Smith
Vice President - Finance & Treasurer Collin
Vice President and Controller Brock
Vice President - Customer Services Morrissey
Senior Vice President - Communication & Regulation Gantz
Vice President - Communication & Regulation Stewart
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1998
METHODS OF ALLOCATION
See Next Page
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1998
METHODS OF ALLOCATION
The cost of services rendered by UNITIL Service are allocated and
billed based on direct time charges and to a lesser extent, direct cost
assigned to individual projects or jobs performed on behalf of associated
companies in accordance with the general guidelines set forth below.
A. Direct Labor Cost - Gross Wages. Direct Labor Cost - Gross Wages are
based on the actual gross wage rates of assigned employees multiplied by the
actual number of hours worked and directly charged to specific projects or
jobs.
B. Direct Labor Cost - Other. Direct Labor Cost - Other includes the costs
of paid absences, such as vacations, sick pay and holidays, and are allocated
by employee based on the direct time charged to associated companies. In
the event there are no direct time charges available for this allocation,
the direct time charges of all UNITIL Service employees are used to make
this allocation.
C. General Overhead Costs, including Indirect Labor. General Overhead
Costs represent UNITIL Service Indirect Labor Costs and Administrative and
General Expenses, and are allocated based on a monthly overhead rate applied
against direct time charges. Indirect Labor Costs include pension costs,
insurance, payroll taxes, employee savings plan, and similar payroll and
benefit items. Administrative and General Expenses are those administrative
and operating expenses incurred by UNITIL Service in providing services to
associated companies which cannot be identified with or directly charged to
a specific project or job.
D. Direct Charges. Direct Charges are costs that are directly assignable
based on the individual projects or jobs performed on behalf of associated
companies, and are excluded from General Overheads. Direct Charges are
billed at actual cost and include: Employee Travel, Meals, Lodging, and
Other Related Expenses, Data Management Hardware Leases and Maintenance
Costs, Telephone Lease, and other miscellaneous expenses.
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1998
ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED
Non applicable
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1998
SIGNATURE CLAUSE
Pursuant to the requirements of the Public Utility Holding Company Act of
1935 and the rules and regulations of the Securities and Exchange
Commission issued thereunder, the undersigned company has duly caused
this report to be signed on its behalf by the undersigned officer thereunto
duly authorized,
UNITIL Service Corp.
(Name of Reporting Company)
By:
(Signature of Signing Officer)
Laurence M. Brock, Controller
(Printed Name and Title of Signing Officer)
Date: