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SIGNATURE
Pursuant to the requirements of the Public Utility Holding Company Act of
1935, the undersigned company has duly caused this Certificate to be signed on
its behalf by the undersigned thereunto duly authorized.
Unitil Resources, Inc.
By: /s/ Gail A. Siart
-------------------------
Gail A. Siart
Treasurer
Dated: November 13, 1996
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________________________________________________________________
Application of Unitil Corporation )
) CERTIFICATE PURSUANT TO
and its Subsidiaries on Form U-1 ) RULE 24 UNDER THE PUBLIC
) UTILITY HOLDING COMPANY
(File No. 70-8074) ) ACT OF 1935
_______________________________________________________________________________
Pursuant to the requirements of Rule 24 under the Public Utility Holding
Company Act of 1935, Unitil Corporation, on behalf of itself and its
subsidiary, Unitil Resources, Inc. hereby files the attached quarterly report
as required by the Securities and Exchange Commission's order approving the
formation of a subsidiary company to provide consulting services to non
affiliates (HCAR. No. 25816; File No. 70-8074; May 24, 1993) and its order
approving the provision by that subsidiary of additional services including
energy marketing and energy management services (HCAR. No. 26487; File No.
70-8773; May 31, 1996).
Exhibits
Exhibit A - Description of the various consulting, energy marketing, energy
management and other activities undertaken by Unitil Resources,
Inc.
Exhibit B - Statement of the amount of funds invested by Unitil in
Unitil Resources, Inc.
Exhibit C - Description of staffing.
Exhibit D - Description of the intellectual property.
Exhibit E - Statement of energy marketing expenses incurred by Unitil
Resources, Inc.
Exhibit F - Statement of energy sales.
Exhibit G - Financial Statements.
EXHIBIT A
Page 1 of 1
Description of Various Consulting, Energy Marketing, Energy Management and
Other Activities Undertaken by Unitil Resources Inc:
Staff providing services under the activities listed below (unless
otherwise indicated) are located at Unitil Service Corp. (Unitil Service),
6 Liberty Lane West, Hampton, NH 03842-1720, where most client work is
performed. From time to time staff visit other locations, predominately in
New England, representing client interests.
Consulting Services
A. Kingston-Warren Corporation Consultancy. An agreement was signed as of
December 30, 1994 between Unitil Resources and Kingston-Warren Corporation
(K-W) under which Unitil Resources will assist K-W in the conduct of studies
relating to alternatives to K-W's current retail power supply arrangements.
No charges have been assessed to date on this contract.
Energy Marketing Activities
A. New Hampshire Pilot Program. As of July 1, 1996, Unitil Resources became
eligible to begin marketing electricity at retail to statewide participants
in the New Hampshire Pilot Program. This 24-month program allows 3% of all
electric customers in the State of New Hampshire to purchase unbundled
electricity from the supplier of their choice. Revenues generated from this
activity during the third quarter of 1996, and for the year-to-date, were
both $64,364.
Energy Management Services
No contracts/activities to date.
EXHIBIT B
Statement of the Amount of Funds Invested by Unitil Corporation in Unitil
Resources, Inc.:
The initial investment in Unitil Resources, Inc. was $10,000. There has
been no further investment.
EXHIBIT C
Description of Staffing:
Staff involved in providing service to Unitil Resources, Inc. (Unitil
Resources) are located at Unitil Service Corp. (Unitil Service). Service is
provided to Unitil Resources pursuant to a service agreement between Unitil
Service and Unitil Resources dated July 1, 1993. Services provided by Unitil
Service during the third quarter of 1996, and cumulatively to date, included
regulatory, finance, accounting, marketing, energy management and
administrative services and ranged in number from fifty to seventy-four
employees on a part-time basis each month. The following are the percentages
of time that were expended on Unitil Resources activities in the third
quarter of 1996 and cumulatively to date:
Consulting Energy Energy
& Other Marketing Mgmt. Total
First Quarter 0.20% 0.00% 0.00% 0.20%
Second Quarter 0.00% 3.40% 0.00% 3.40%
Third Quarter 0.00% 2.13% 0.00% 2.13%
Fourth Quarter
Year To Date 0.07% 1.84% 0.00% 1.91%
EXHIBIT D
Description of the Intellectual Property:
No intellectual property was purchased or received during the quarter.
EXHIBIT E
Statement of Energy Marketing Expenses:
Quarter Ended Year-To-Date
September 30, 1996 Period
Retail Energy Marketing Expenses $39,477 $457,775
Wholesale Energy Marketing Expenses -- --
Total Energy Marketing Expenses $39,477 $457,775
EXHIBIT F
Statement of Energy Sales:
Kilowatt Hour Sales
for Quarter Ended Year to Date
September 30, 1996 Kilowatt Hour Sales
Retail Energy Marketing
Residential 1,534,240 1,534,240
Commercial 92,088 92,088
Industrial 58,049 58,049
Total Retail Energy Marketing 1,684,377 1,684,377
Wholesale Energy Marketing -- --
Total Energy Marketing 1,684,377 1,684,377
EXHIBIT G
Page 1 of 5
Unitil Resources, Inc.
(A Wholly-owned Subsidiary of Unitil Corporation)
STATEMENTS OF EARNINGS
(UNAUDITED)
Three Months Ended Nine Months Ended
September 30, September 30,
1996 1995 1996 1995
Revenues:
Service Revenues $ -- $239,590 $15,427 $651,260
Electric Revenues 64,364 -- 64,364 --
------- -------- ------- --------
Total Revenues 64,364 239,590 79,791 651,260
Operating Expenses:
Purchased Power 78,524 -- 78,524 --
Administrative
and General 32,678 167,516 467,138 417,314
------ ------- ------- -------
Total Operating
Expenses 111,202 167,516 545,662 417,314
------- ------- ------- -------
Operating Income (46,838) 72,074 (465,871) 233,946
Nonoperating Income 3,492 105 13,633 210
------- ------ -------- -------
Earning Before
Income Taxes (43,346) 72,179 (452,238) 234,156
Income Taxes:
Current Federal (13,820) 22,933 (142,998) 74,150
Current State (3,058) 5,052 (31,656) 16,391
------- ------ -------- -------
Total Income Taxes (16,878) 27,985 (174,654) 90,541
------- ------ -------- -------
Net Income ($26,468) $44,194 ($277,584) $143,615
Exhibit G
Page 2 of 5
Unitil Resources, Inc.
(A Wholly-owned Subsidiary of Unitil Corporation)
BALANCE SHEETS
(UNAUDITED)
September 30, December 31
1996 1995 1995
ASSETS:
Current Assets:
Cash $98,549 $305,802 $411,781
Accounts Receivable 61,385 -- 258
Unbilled and Accrued Revenue 25,081 25,824 4,181
------- ------- -------
Total Current Assets 185,015 331,626 416,220
Deferred Debits 22,915 -- --
-------- -------- --------
Total Assets $207,930 $331,626 $416,220
LIABILITIES AND
STOCKHOLDERS EQUITY:
Current Liabilities:
Accounts Payable $132,652 $48,799 $50,862
Taxes Accrued & Other 9,166 (1,052) 21,663
-------- ------- -------
Total Current Liabilities 141,818 47,747 72,525
Stockholder's Equity:
Common Stock, $1.00 par value
Authorized - 10,000 shares
Outstanding - 10,000 shares 100 100 100
Premium on Common Stock 9,900 9,900 9,900
Retained Earnings 56,112 273,879 333,695
------ ------- -------
Total Stockholder's Equity 66,112 283,879 343,695
-------- -------- --------
Total Liabilities and Equity $207,930 $331,626 $416,220
Exhibit G
Page 3 of 5
Unitil Resources, Inc.
(A Wholly-owned Subsidiary of Unitil Corporation)
STATEMENTS OF CASH FLOWS
(UNAUDITED)
For the Nine Months Ended
September 30,
1996 1995
Net Cash Flow from Operating Activities:
Net Income ($277,584) $143,615
Change in Assets and Liabilities
(Increase) Decrease in:
Accounts Receivable (61,127) 65,564
Unbilled and Accrued Revenue (20,900) (16,876)
Deferred Debits (22,915) 1,484
Increase (Decrease) in:
Accounts Payable 81,790 (3,204)
Taxes Accrued & Other (12,496) 16,504
--------- -------
Net Cash Provided by Operating Activities (313,232) 207,087
Net Increase in Cash (313,232) 207,087
Cash at beginning of year 411,781 98,715
--------- -------
Cash at September 30, $98,549 $305,802
Exhibit G
Page 4 of 5
Unitil Resources, Inc.
(A Wholly-owned Subsidiary of Unitil Corporation)
STATEMENTS OF CASH FLOWS
(UNAUDITED)
For the Nine Months Ended September 30, 1996
Other
Electric Energy Energy
Consulting Power Commodity Mgmt.
& Other Marketing Sales Services Total
Net Cash Flow from
Operating Activities:
Net Income $7,958 $(285,542) -- -- $(277,584)
Change in Assets
and Liabilities
(Increase) Decrease in:
Accounts Receivable 258 (61,385) -- -- (61,127)
Unbilled and
Accrued Revenue 3,824 (24,724) -- -- (20,900)
Deferred Debits -- (22,915) -- -- (22,915)
Increase (Decrease) in:
Accounts Payable (20,450) 102,240 -- -- 81,790
Taxes Accrued & Other (4,115) (8,381) -- -- (12,496)
-------- -------- ------ ------ --------
Net Cash Provided
by Operating Activities (16,349) (300,707) -- -- (313,232)
Net Increase in Cash (313,232)
Cash at beginning of year 411,781
---------
Cash at September 30, $98,549
Exhibit G
Page 5 of 5
Unitil Resources, Inc.
(A Wholly-owned Subsidiary of Unitil Corporation)
STATEMENTS OF RETAINED EARNINGS
(UNAUDITED)
For the Three Months Ended
September 30,
1996 1995
Retained Earnings, Beginning of Period $82,580 $182,305
Net Income (26,468) 47,380
-------- --------
Retained Earnings, End of Period $56,112 $229,685
For the Nine Months Ended
September 30,
1996 1995
Retained Earnings, Beginning of Period $333,696 $130,264
Net Income (277,584) 99,421
-------- --------
Retained Earnings, End of Period $56,112 $229,685