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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, 1996 and Ending December 31, 1996
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, 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, 1996
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
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1996
LISTING OF INSTRUCTIONAL FILING REQUIREMENTS Page
Number
Description of Reports or Statements
SCHEDULE XIX - FINANCIAL DATA 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, 1996
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) 3,768,171 3,354,797
107 Construction work in progress (Schedule II) 0 0
Total Property 3,768,171 3,354,797
108 Less accumulated provision for depreciation
and amortization of service company
property (Schedule III) 1,016,751 2,087,238
Net Service Company Property 2,751,420 1,267,559
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 236,981 24,120
134 Special deposits 0 0
135 Working funds 5,000 5,000
136 Temporary cash investments (Schedule IV) 0 0
141 Notes receivable 0 0
143 Accounts receivable 125 214,939
144 Accumulated provision for uncollectable
accounts 0 0
146 Accounts receivable from associate
companies (Schedule V) 1,481,480 1,258,235
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 20,826 12,989
174 Miscellaneous current and accrued
assets (Schedule VIII) 0 0
Total Current and Accrued Assets 1,744,413 1,515,284
DEFERRED DEBITS
181 Unamortized debt expense 0 0
184 Clearing accounts 223,705 151,276
186 Miscellaneous deferred debits (Schedule IX) 381,410 57,028
188 Research, development, or demonstration
expenditures (Schedule X) 0 0
190 Accumulated deferred income tax 0 0
Total Deferred Debits 605,115 208,304
TOTAL ASSETS AND OTHER DEBITS 5,100,948 2,991,147
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1996
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 962,712 807,812
CURRENT AND ACCRUED LIABILITIES
231 Notes payable 0 0
232 Accounts payable 637,247 82,314
233 Notes payable to associate
companies (Schedule XIII) 449,801 611,852
234 Accounts payable to associate
companies (Schedule XIII) 1,306,915 978,244
236 Taxes accrued 6,164 16,941
237 Interest accrued 0 0
238 Dividends declared 0 0
241 Tax collections payable 0 (107)
242 Miscellaneous current and accrued
liabilities (Schedule XIII) 616,692 606,512
243 Obligations under capital leases - current 1,785,920 438,993
Total Current and Accrued Liabilities 4,802,739 2,734,750
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 (667,191) (554,102)
TOTAL LIABILITIES AND PROPRIETARY CAPITAL 5,100,948 2,991,147
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1996
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/ 2,614,971 1,337,137 (938,068) 0 3,014,040
308 OFFICE FURNITURE
AND EQUIPMENT 663,084 718,200 (661,381) 0 719,903
309 AUTOMOBILES,
OTHER
VEHICLES AND
RELATED GARAGE
EQUIPMENT 76,742 0 (42,514) 0 34,228
310 AIRCRAFT AND
AIRPORT EQUIPMENT
311 OTHER SERVICE
COMPANY
PROPERTY 3/
SUB-TOTAL 3,354,797 2,055,337 (1,641,963) 0 3,768,171
107 CONSTRUCTION
WORK IN
PROGRESS
TOTAL 3,354,797 2,055,337 (1,641,963) 0 3,768,171
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, 1996
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 1,059,043 2,735,946
PBX Phone System 278,094 278,094
TOTAL 1,337,137 3,014,040
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, 1996
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 1,466,042 437,327 (938,068) 0 965,301
308 OFFICE FURNITURE
AND EQUIPMENT 565,728 123,573 (661,381) 0 27,920
309 AUTOMOBILES,
OTHER
VEHICLES AND
RELATED GARAGE
EQUIPMENT 55,468 10,576 (42,514) 0 23,530
310 AIRCRAFT AND
AIRPORT EQUIPMENT
311 OTHER SERVICE
COMPANY PROPERTY
TOTAL 2,087,238 571,476 (1,641,963) 0 1,016,751
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, 1996
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, 1996
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
company, number of shares or principal amount
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 252,799 258,852
Exeter & Hampton Electric Company 271,585 300,337
1
Fitchburg Gas and Electric Light Company 485,809 583,491
UNITIL Power Corp. 180,125 320,773
UNITIL Realty Corp. 14,418 7,342
UNITIL Corporation 2,637 1,155
UNITIL Resources, Inc. 50,862 9,530
TOTAL 1,258,235 1,481,480
ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS:
Concord Electric Company 135,744
Exeter & Hampton Electric Company 140,213
Fitchburg Gas and Electric Light Company 404,824
UNITIL Power Corp. 420,803
UNITIL Realty Corp. 98,956
UNITIL Resources, Inc. 6,945
For a list of major vendors paid by UNITIL Service Corp. on behalf of
associate companies see page 10A.
TOTAL PAYMENTS 1,207,485
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31,1996
CONVENIENCE PAYMENTS BY TYPE AND COMPANY
CECo E&H FG&E UPC
Legal $89,961 $93,709 $342,153 $400,419
Audit 45,783 46,504 62,671 20,384
$135,744 $140,213 $404,824 $420,803
CONVENIENCE PAYMENTS BY TYPE AND COMPANY (Cont.)
URI URC Total
Legal $5,452 $97,840 $1,029,534
Audit 1,493 1,116 177,951
$6,945 $98,956 $1,207,485
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1996
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, 1996
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, 1996
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, 1996
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 (7,438) 17,466
Prepaid Postage 18,838 36,839
Deferred Charges - PC purchases 0 21,181
Reimbursable Relocation Costs 0 51,456
Deferred Charges - Software Development 45,628 254,468
TOTAL 57,028 381,410
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1996
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, 1996
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, 1996
SCHEDULE XII - LONG-TERM DEBT INSTRUCTIONS:Advances from associate companies
should be reported separately for advances on notes, andadvances 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, 1996
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 611,852 449,801
TOTAL 611,852 449,801
ACCOUNT 234 - ACCOUNTS PAYABLE TO ASSOCIATE
COMPANIES
Concord Electric Company 756 0
Exeter & Hampton Electric Company 0 0
Fitchburg Gas and Electric Company 0 0
UNITIL Corporation (1) 977,488 1,306,915
(1) Balance consists of KESOP for UNITIL
Service Employees only, not subsidaries.
TOTAL 978,244 1,306,915
ACCOUNT 242 - MISCELLANEOUS CURRENT
AND ACCRUED LIABILITIES
Accrued FASB 87 160,155 202,373
Accrued Supplemental Executive Retirement Plan 257,164 289,959
Accrued Legal Fees 6,406 5,863
Accrued Annual Report 72,127 60,000
Accrued Pension Expense 0 0
Accrued FASB 106 34,132 44,668
Accrued FASB 106 - APBO 10,677 14,241
Accrued FASB 106 - Gain/Loss (1,649) (1,649)
Accrued Realignment Cost 67,500 0
Accrued Interest on Escrow 0 1,237
TOTAL 606,512 616,692
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1996
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 1996 UNITIL Corporation Form 10-K for additional
disclosures.
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1996
SCHEDULE XV
STATEMENT OF INCOME
ACCOUNT DESCRIPTION CURRENT PRIOR
YEAR YEAR
INCOME
457 Services rendered to associate companies 10,369,118 8,710,699
458 Services rendered to nonassociate
companies 30,000 30,000
419 Interest Income 3,683 1,574
421 Miscellaneous income or loss 4,000 0
Total Income 10,406,801 8,742,273
EXPENSE
920 Salaries and wages 5,296,792 4,734,570
921 Office supplies and expenses 616,531 513,765
922 Administrative expense transferred -
credit (25,279) 207,795
923 Outside services employed 576,206 286,326
924 Property insurance 3,931 1,788
925 Injuries and damages 28,700 32,640
926 Employee pensions and benefits 1,195,345 994,124
928 Regulatory commission expense 0 0
930.1 General advertising expense 780,986 45,258
930.2 Miscellaneous general expense 151,582 175,088
931 Rents 412,261 760,178
932 Maintenance of structures and
equipment 274,457 207,108
403 Depreciation and amortization expense 571,476 349,554
408 Taxes other than income taxes 367,745 333,476
409 Income taxes 123,083 76,680
410 Provision for deferred income taxes (113,089) (58,854)
411 Provision for deferred income taxes -
credit 0 0
411.5 Investment tax credit 0 0
426.1 Donations 720 2,710
426.5 Other deductions 23 907
427 Interest on long-term debt 0 0
430 Interest on debt to associate
companies 19,387 19,184
431 Other interest expense 125,944 59,976
Total Expense 10,406,801 8,742,273
Net Income or (Loss) 0 0
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1996
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 1,059,550 1,043,861 0 2,103,411
Exeter & Hampton Electric
Company 1,128,545 1,118,564 0 2,247,109
Fitchburg Gas and Electric
Light Company 1,956,466 1,967,321 0 3,923,787
UNITIL Power Corp. 886,257 927,631 0 1,813,888
UNITIL Realty Corp. 22,235 25,817 0 48,052
UNITIL Resources, Inc. 150,057 82,814 0 232,871
TOTAL 5,203,110 5,166,008 0 10,369,118
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1996
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, 1996
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 4,747,187 519,605 5,266,792
921 OFFICE SUPPLES AND EXPENSES 226,078 390,453 616,531
922 ADMIN EXPENSE TRANS-CREDIT (25,279) (25,279)
923 OUTSIDE SERVICES EMPLOYED 576,206 576,206
924 PROPERTY INSURANCE 3,931 3,931
925 INJURIES AND DAMAGES 28,700 28,700
926 EMPLOYEE PENSIONS AND BENEFITS 1,195,345 1,195,345
928 REGULATORY COMMISSION EXPENSE 0 0
930.1 GENERAL ADVERTISING EXPENSE 780,986 780,986
930.2 MISC. GENERAL EXPENSE 151,582 151,582
931 RENTS 189,687 222,574 412,261
932 MAINT. OF STRUCT. & EQUIP. 40,158 234,299 274,457
403 DEPR. AND AMORT. EXPENSE 571,476 571,476
408 TAXES OTHER THAN INCOME 367,745 367,745
409 INCOME TAXES 123,083 123,083
410 PROV FOR DEF INC TAXES (113,089) (113,089)
411 PROV FOR DEF INC TAX CREDIT 0
411.5 INVESTMENT TAX CREDIT 0
419 INTEREST INCOME (7,683) (7,683)
426.1 DONATIONS 720 720
426.5 OTHER DEDUCTIONS 23 23
427 INTEREST ON LONG-TERM DEBT 0
431 OTHER INTEREST EXPENSE 125,944 125,944
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 5,203,110 5,146,621 10,349,731
COMPENSATION FOR USE OF EQUITY CAPITAL 0
430 INTEREST ON DEBT TO ASSOCIATE CO.'S 0 19,387 19,387
TOTAL EXPENSES 5,203,110 5,166,008 10,369,118
421 MISCELLANEOUS INCOME 0 0 0
TOTAL COST OF SERVICE 5,203,110 5,166,008 10,369,118
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
933 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 4,747,187 549,605 5,296,792
921 OFFICE SUPPLES AND EXPENSES 226,078 390,453 616,531
922 ADMIN EXPENSE TRANS-CREDIT 0 (25,279) (25,279)
923 OUTSIDE SERVICES EMPLOYED 576,206 576,206
924 PROPERTY INSURANCE 3,931 3,931
925 INJURIES AND DAMAGES 28,700 28,700
926 EMPLOYEE PENSIONS AND BENEFITS 1,195,345 1,195,345
928 REGULATORY COMMISSION EXPENSE 0 0
930.1 GENERAL ADVERTISING EXPENSE 780,986 780,986
930.2 MISC. GENERAL EXPENSE 151,582 151,582
931 RENTS 189,687 222,574 412,261
932 MAINT. OF STRUCT. & EQUIP. 40,158 234,299 274,457
403 DEPR. AND AMORT. EXPENSE 571,476 571,476
408 TAXES OTHER THAN INCOME 367,745 367,745
409 INCOME TAXES 123,083 123,083
410 PROV FOR DEF INC TAXES (113,089) (113,089)
411 PROV FOR DEF INC TAX CREDIT 0 0
411.5 INVESTMENT TAX CREDIT 0 0
419 INTEREST INCOME (7,683) (7,683)
426.1 DONATIONS 720 720
426.5 OTHER DEDUCTIONS 23 23
427 INTEREST ON LONG-TERM DEBT 0 0
431 OTHER INTEREST EXPENSE 125,944 125,944
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 5,203,110 5,176,621 10,379,731
COMPENSATION FOR USE OF EQUITY CAPITAL 0
430 INTEREST ON DEBT TO ASSOCIATE CO.'S 0 19,387 19,387
TOTAL EXPENSES 5,203,110 5,196,008 10,399,118
421 MISCELLANEOUS INCOME 0 0 0
TOTAL COST OF SERVICE 5,203,110 5,196,008 10,399,118
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1996
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 5,296,792 657,086 1,017,893
921 OFFICE SUPPLES AND EXPENSES 616,531 96,699 286,625
922 ADMIN. EXPENSE TRANS-CREDIT (25,279)
923 OUTSIDE SERVICES EMPLOYED 576,206 148,948 217,271
924 PROPERTY INSURANCE 3,931
925 INJURIES AND DAMAGES 28,700
926 EMPLOYEE PENSIONS AND BENEFITS 1,195,345 1,574 882,729
928 REGULATORY COMMISSION EXPENSE 0
930.1 GENERAL ADVERTISING EXPENSE 780,986 764,009 16,976
930.2 MISC. GENERAL EXPENSE 151,582 1,660 2,356
931 RENTS 412,261 375 492,929
932 MAINT. OF STRUCT. & EQUIP. 274,457 133,809
403 DEPR. AND AMORT. EXPENSE 571,476
408 TAXES OTHER THAN INCOME 367,745
409 INCOME TAXES 123,083
410 PROV. FOR DEF. INC. TAXES (113,089)
411 PROV. FOR DEF. INC. TAX CREDIT 0
411.5 INVESTMENT TAX CREDIT 0
426.1 DONATIONS 720
426.5 OTHER DEDUCTIONS 23
427 INTEREST ON LONG-TERM DEBT 0
430 INTEREST ON DEBT TO ASSOCIATE
COMPANIES 19,387
431 OTHER INTEREST EXPENSE 125,944
INSTRUCTIONS: Indicate each
department or
service function. (see Instruction
01-3 General Structure of Account-
ing System Uniform System Account.
TOTAL EXPENSES - 10,406,801 0 1,670,351 3,050,588
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1996
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
NUMBER ACCOUNTING RESOURCES DISTRIBUTION FINANCE AFFAIRS ENGINEERING TECHNOLOGY
920 673,802 658,529 488,467 521,651 607,691 389,133 282,540
921 35,870 55,512 15,332 12,143 15,644 19,812 78,894
922 (25,279)
923 12,965 8,486 140 15,987 160,462 11,409 535
924 3,931
925 28,700
926 3,055 303,403 1,017 785 2,782
928
930.1
930.2 25,000 119,579 2,987
931 (665,530) 12,191 228,732 4,770 338,795
932 46,235 61,973 1,640 30,801
403 571,476
408 367,745
409 123,083
410 (113,089)
411
411.5
426.1 720
426.5 23
427
430 19,387
431 125,944
1,056,076 722,527 516,130 1,150,725 1,078,506 427,549 734,347
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1996
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 657,086 0 657,086 0 13
Technology 282,540 0 282,540 0 6
Accounting 673,802 0 669,002 4,800 16
Finance 521,651 0 521,051 600 10
Administrative 1,017,893 0 994,193 23,700 15
Energy Resources 658,529 0 658,529 0 14
Engineering 389,133 0 389,133 0 8
Distribution 488,467 0 488,467 0 5
Customer Affairs 607,691 0 606,791 900 16
TOTAL 5,296,792 0 5,266,792 30,000 103
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1996
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 $100,000, 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 - Accounting
Various NA 12,965
Outside Services - Consulting
Charles H. Tenney II A 105,000
Outside Services-Legal
Various NA 88,379
Outside Services - Other
Various NA 369,862
TOTAL 576,206
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1996
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 507,806
Net Periodic Pension Expense 285,593
401 K 144,863
Life Insurance 82,040
Other 89,843
Supplemental Executive Retirement Plan 71,100
FASB 106 14,100
TOTAL 1,195,345
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1996
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 16,976
Advertising Luma & Cahill 710,147
Advertising International Stratergies 10,000
Advertising University of New Hamsphire 7,000
Advertising NHITA 3,800
Advertising Northeast Creations 4,667
Advertising Wmur-TV 4,250
Advertising Other 24,146
TOTAL 780,986
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1996
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 150,207
SEC Filing Fees 1,375
TOTAL 151,582
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1996
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 369,302
EDP Equipment 228,732
Miscellaneous (185,773)
TOTAL 412,261
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1996
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 5,493
State Unemployment Tax - NH 8,046
13,539
U.S. Government Tax:
Federal Telephone & Telegram Tax 2,986
Federal Insurance Contribution Act 344,834
Federal Unemployment Tax 6,386
354,206
TOTAL 367,745
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1996
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
Aggregate 720
TOTAL 720
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1996
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
Lobbying Expenses Business and Industry 12
Lobbying Expenses American Institute of CPA's 11
TOTAL 23
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1996
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, 1996
ORGANIZATION CHART
See page 37A.
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1996
ORGANIZATION CHART AS OF DECEMBER 31, 1996
President and Chief Executive Officer Stulgis
Senior Executive Vice President - Retail Business Dalton
Vice President - Engineering Appleton
Vice President - Customer Services Morrissey
Vice President - Distribution Aither
Senior Vice President - Energy Resources Daly
Vice President - Operations Foote
Assistant Vice President - Procurement Soares
Senior Vice President - Financial & Central Siart
Vice President - Finance & Administration Collin
Controller Brock
Assistant Vice President - Technology Smith
Senior Vice President - Business Development Gantz
Assistant Vice President - Market Pricing Stewart
Assistant Vice President - Market Develop Zabetakis
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1996
METHODS OF ALLOCATION
See Page 38A
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1996
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, 1996
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, 1996
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:
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1996