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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), 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), and its supplemental order authorizing expansion of
retail energy marketing activities by that subsidiary (HCAR No. 26650; File
No. 70-8773; January 21, 1997).
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 Consulting. 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.
B. Bangor Hydro Electric Consulting. During March 1997, Unitil Resources
performed consulting work for Bangor Hydro Electric Company, which
included furnishing a complete set of electronic Construction Standards
in portable document format, suitable for electronic distribution and
publishing over the Internet. Charges of $6,200 were assessed on this
contract.
C. Sale of Survey Information. During the first quarter of 1997, Unitil
Resources, in partnership with The Delahaye Group (a New Hampshire-based
market research firm), began to market and sell a report analyzing the New
Hampshire Pilot Program, and which provided the results of a survey
completed in late 1996 of Pilot Program participants. The two entities are
equally dividing the revenues from the sale of these reports, which are
priced at $5,000. To date, Unitil Resources has received $5,000 in
revenues from the sale of two reports.
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 electricity from the supplier of their choice. Revenues
generated from this activity during the first quarter of 1997 and for
the year-to-date were $123,267.
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 first quarter of 1997 included regulatory, finance,
accounting, marketing, energy management and administrative services and
ranged in number from thirteen to seventeen employees on a part-time basis
each month. Services provided by Unitil Service cumulatively to date
included the same categories and ranged in number from thirteen to seventy-
four employees on a part-time basis each month. The following are the
percentages of Unitil Service time that were expended on Unitil Resources
activities in the first quarter of 1997 and cumulatively to date:
Consulting Energy Energy
& Other Marketing Mgmt. Total
First
Quarter 0.04% 0.83% 0.00% 0.87%
Second
Quarter 0.00% 0.00% 0.00% 0.00%
Third
Quarter 0.00% 0.00% 0.00% 0.00%
Fourth
Quarter 0.00% 0.00% 0.00% 0.00%
Year
To Date 0.04% 0.83% 0.00% 0.87%
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
March 31, 1997 Period
Retail Energy Marketing Expenses ($1,884) ($1,884)
Wholesale Energy Marketing Expenses -- --
Total Energy Marketing Expenses ($1,884) ($1,884)
EXHIBIT F
Statement of Energy Sales:
Kilowatt Hour Sales Year to Date
for Quarter Ended Kilowatt Hour Sales
March 31, 1997
Retail Energy Marketing
Residential 3,327,060 3,327,060
Commercial 205,000 205,000
Industrial 392,650 392,650
Total Retail Energy Marketing 3,924,710 3,924,710
Wholesale Energy Marketing -- --
Total Energy Marketing 3,924,710 3,924,710
EXHIBIT G
Page 1 of 5
Unitil Resources, Inc.
(A Wholly-owned Subsidiary of Unitil Corporation)
STATEMENTS OF EARNINGS
(UNAUDITED)
Three Months Ended
March 31,
1997 1996
Revenues:
Service Revenues $5,000 $15,785
Electric Revenues 123,267 --
Total Revenues 128,267 15,785
Operating Expenses:
Purchased Power 117,464 --
Administrative and General 28,874 13,282
Total Operating Expenses 146,338 13,282
Operating Income (18,071) 2,503
Nonoperating Income (153) 5,200
Earning Before Income Taxes (18,224) 7,703
Income Taxes:
Federal (5,762) 2,436
State (1,276) 539
Total Income Taxes (7,038) 2,975
Net Income ($11,186) $4,728
Exhibit G
Page 2 of 5
Unitil Resources, Inc.
(A Wholly-owned Subsidiary of Unitil Corporation)
BALANCE SHEETS
(UNAUDITED)
March 31, December 31
ASSETS: 1997 1996 1996
Current Assets:
Cash $29,487 $369,987 $ 2,491
Accounts Receivable 78,125 0 71,604
Unbilled and Accrued Revenue 60,766 358 39,623
Total Current Assets 168,378 370,345 113,718
Deferred Debits -- -- --
Total Assets $168,378 $370,345 $113,718
LIABILITIES AND
STOCKHOLDERS EQUITY:
Current Liabilities:
Accounts Payable $102,861 $757 $102,806
Notes Payable 103,045 0 0
Taxes Accrued & Other (81,461) 21,164 (44,206)
Total Current Liabilities 124,445 21,921 58,600
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 33,933 338,424 45,118
Total Stockholder's Equity 43,933 348,424 55,118
Total Liabilities and Equity $168,378 $370,345 $113,718
Exhibit G
Page 3 of 5
Unitil Resources, Inc.
(A Wholly-owned Subsidiary of Unitil Corporation)
STATEMENTS OF CASH FLOWS
(UNAUDITED)
For the Three Months Ended
March 31,
1997 1996
Net Cash Flow from Operating Activities:
Net Income $(11,186) $4,728
Change in Assets and Liabilities
(Increase) Decrease in:
Accounts Receivable (6,521) 258
Unbilled and Accrued Revenue (21,143) 3,823
Deferred Debits 0 0
Increase (Decrease) in:
Accounts Payable 55 (50,105)
Notes Payable 103,045 0
Taxes Accrued & Other (37,254) (498)
Net Cash Provided by Operating Activities 26,996 (41,794)
Net Increase in Cash 26,996 (41,794)
Cash at beginning of year 2,491 411,781
Cash at March 31, $29,487 $369,987
Exhibit G
Page 4 of 5
Unitil Resources, Inc.
(A Wholly-owned Subsidiary of Unitil Corporation)
STATEMENTS OF CASH FLOWS
(UNAUDITED)
For the Three Months Ended March 31, 1997
Other
Electric Energy Energy
Consulting Power Commodity Mgmt.
& Other Marketing Sales Services Total
Net Cash Flow from
Operating Activities:
Net Income $(11,186) $(11,186)
Change in Assets
and Liabilities
(Increase) Decrease in:
Accounts Receivable (6,521) (6,521)
Unbilled and
Accrued Revenue (21,143) (21,143)
Increase (Decrease) in:
Accounts Payable 55 55
Notes Payable 103,045 103,045
Taxes Accrued & Other (37,254) (37,254)
Net Cash Provided
by Operating Activities 26,996 26,996
Net Increase in Cash 26,996
Cash at beginning of year 2,491
Cash at March 31, $29,487
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
March 31,
1997 1996
Retained Earnings, Beginning of Period $45,119 $333,696
Net Income (11,186) 4,728
Retained Earnings, End of Period $33,933 $338,424
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: May 29, 1997