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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, 1997 and Ending December 31, 1997
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, 1997
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, 1997
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, 1997
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) 4,766,665 3,768,171
107 Construction work in progress (Schedule II) 0 0
Total Property 4,766,665 3,768,171
108 Less accumulated provision for depreciation
and amortization of service company
property (Schedule III) 1,769,333 1,016,751
Net Service Company Property 2,997,332 2,751,420
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 487,562 236,981
134 Special deposits 0 0
135 Working funds 6,000 5,000
136 Temporary cash investments (Schedule IV) 0 0
141 Notes receivable 0 0
143 Accounts receivable 113,241 125
144 Accumulated provision for uncollectable
accounts 0 0
146 Accounts receivable from associate
companies (Schedule V) 2,032,757 1,481,480
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 63,158 20,826
174 Miscellaneous current and accrued
assets (Schedule VIII) 0 0
Total Current and Accrued Assets 2,702,718 1,744,413
DEFERRED DEBITS
181 Unamortized debt expense 0 0
184 Clearing accounts 251,770 223,705
186 Miscellaneous deferred debits (Schedule IX) 1,036,457 381,410
188 Research, development, or demonstration
expenditures (Schedule X) 0 0
190 Accumulated deferred income tax 0 0
Total Deferred Debits 1,288,227 605,115
TOTAL ASSETS AND OTHER DEBITS 6,988,277 5,100,948
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1997
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 2,233,598 962,712
CURRENT AND ACCRUED LIABILITIES
231 Notes payable 0 0
232 Accounts payable 666,092 637,247
233 Notes payable to associate
companies (Schedule XIII) 1,816,986 449,801
234 Accounts payable to associate
companies (Schedule XIII) 1,452,443 1,306,915
236 Taxes accrued 35,932 6,164
237 Interest accrued 0 0
238 Dividends declared 0 0
241 Tax collections payable 0 0
242 Miscellaneous current and accrued
liabilities (Schedule XIII) 748,570 616,692
243 Obligations under capital leases - current 752,887 1,785,920
Total Current and Accrued Liabilities 5,472,910 4,802,739
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 (720,919) (667,191)
TOTAL LIABILITIES AND PROPRIETARY CAPITAL 6,988,277 5,100,948
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1997
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/ 3,014,040 740,268 (31,051) 0 3,723,257
308 OFFICE FURNITURE
AND EQUIPMENT 719,903 308,329 0 0 1,028,232
309 AUTOMOBile
OTHER
VEHICLES AND
RELATED GARAGE
EQUIPMENT 34,228 15,176 (34,228) 0 15,176
310 AIRCRAFT AND
AIRPORT EQUIPMENT
311 OTHER SERVICE
COMPANY
PROPERTY 3/
SUB-TOTAL 3,768,171 1,063,773 (65,279) 0 4,766,665
107 CONSTRUCTION
WORK IN
PROGRESS
TOTAL 3,768,171 1,063,773 (65,279) 0 4,766,665
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, 1997
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 447,386 3,152,281
PBX Phone System 292,881 570,975
TOTAL 740,267 3,723,256
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, 1997
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 965,301 695,668 ( 31,051) 0 1,629,918
308 OFFICE FURNITURE
AND EQUIPMENT 27,920 116,568 0 0 144,488
309 AUTOMOBILES,
OTHER
VEHICLES AND
RELATED GARAGE
EQUIPMENT 23,530 5,625 (34,228) 0 (5,073)
310 AIRCRAFT AND
AIRPORT EQUIPMENT
311 OTHER SERVICE
COMPANY PROPERTY
TOTAL 1,016,751 817,861 (65,279) 0 1,769,333
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, 1997
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, 1997
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 258,852 399,447
Exeter & Hampton Electric Company 300,337 383,034
Fitchburg Gas and Electric Light Company 583,491 873,277
UNITIL Power Corp. 320,773 360,910
UNITIL Realty Corp. 7,342 2,613
UNITIL Corporation 1,155 0
UNITIL Resources, Inc. 9,530 13,476
TOTAL 1,481,480 2,032,757
ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS:
Concord Electric Company 81,091
Exeter & Hampton Electric Company 130,820
Fitchburg Gas and Electric Light Company 428,425
UNITIL Power Corp. 436,446
UNITIL Realty Corp. 18,384
UNITIL Resources, Inc. 27,046
For detail of convenience payments by type and company, paid
by Unitil Service Corp. see following table.
TOTAL PAYMENTS 1,122,212
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31,1997
CONVENIENCE PAYMENTS BY TYPE AND COMPANY
CECo E&H FG&E UPC
Legal $45,993 $94,964 $376,489 $419,727
Audit 35,098 35,855 51,937 16,719
$ 81,091 $130,820 $428,425 $436,446
CONVENIENCE PAYMENTS BY TYPE AND COMPANY (Cont.)
URI URC UC Total
Legal $16,659 $25,323 0 979,156
Audit 1,725 1,723 0 143,056
$18,384 $27,046 0 $1,122,212
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1997
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, 1997
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, 1997
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, 1997
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 17,466 59,822
Postage 36,839 23,856
Deferred Charges - PC purchases 21,181 12,848
Reimbursable Relocation Costs 51,456 0
Payroll System Conversion - Ceridian 0 3,132
Deferred Charges - Software Development 254,468 936,799
TOTAL 381,410 1,036,458
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1997
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, 1997
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, 1997
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, 1997
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 449,801 1,816,986
TOTAL 449,801 1,816,986
ACCOUNT 234 - ACCOUNTS PAYABLE TO ASSOCIATE
COMPANIES
Concord Electric Company 0 0
Exeter & Hampton Electric Company 0 88,580
Fitchburg Gas and Electric Company 0 41,396
UNITIL Corporation (1) 1,306,915 1,321,602
UNITIL Power Corporation 0 865
(1) Balance consists of KESOP for UNITIL
Service Employees only, not subsidaries.
TOTAL 1,306,915 1,452,443
ACCOUNT 242 - MISCELLANEOUS CURRENT
AND ACCRUED LIABILITIES
Accrued FASB 87 202,373 200,616
Accrued Supplemental Executive Retirement Plan 289,959 363,655
Accrued Legal Fees 5,863 3,043
Accrued Annual Report 60,000 54,495
Accrued Pension Expense 0 0
Accrued FASB 106 44,668 65,117
Accrued FASB 106 - APBO 14,241 (2,489)
Accrued FASB 106 - Gain/Loss (1,649) (1,649)
Accrued Severance Cost 0 0
Accrued Interest on Escrow 1,236 23,435
Accrued Miscellaneous Costs 0 42,347
TOTAL 616,692 748,570
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1997
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 1997 UNITIL Corporation Form 10-K for additional
disclosures.
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1997
SCHEDULE XV
STATEMENT OF INCOME
ACCOUNT DESCRIPTION CURRENT PRIOR
YEAR YEAR
INCOME
457 Services rendered to associate companies 12,935,280 10,369,118
458 Services rendered to nonassociate
companies 30,000 30,000
419 Interest Income 539 3,683
421 Miscellaneous income or loss 10,830 4,000
Total Income 12,976,649 10,406,801
EXPENSE
920 Salaries and wages 5,914,082 5,296,792
921 Office supplies and expenses 812,299 616,531
922 Administrative expense transferred -
credit (51,631) (25,279)
923 Outside services employed 863,769 576,206
924 Property insurance 3,524 3,931
925 Injuries and damages 27,449 28,700
926 Employee pensions and benefits 1,404,858 1,195,345
928 Regulatory commission expense 0 0
930.1 General advertising expense 775,607 780,986
930.2 Miscellaneous general expense (59,604) 151,582
931 Rents 1,482,496 412,261
932 Maintenance of structures and
equipment 337,676 274,457
403 Depreciation and amortization expense 785,609 571,476
408 Taxes other than income taxes 402,731 367,745
409 Income taxes 53,612 123,083
410 Provision for deferred income taxes (53,727) (113,089)
411 Provision for deferred income taxes -
credit 0 0
411.5 Investment tax credit 0 0
426.1 Donations 5,046 720
426.5 Other deductions 18 23
427 Interest on long-term debt 0 0
430 Interest on debt to associate
companies 43,446 19,387
431 Other interest expense 229,390 125,944
Total Expense 12,976,649 10,406,801
Net Income or (Loss) 0 0
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1997
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 1,033,719 1,258,902 0 2,292,621
Exeter & Hampton Electric
Company 1,060,684 1,287,365 0 2,348,049
Fitchburg Gas and Electric
Light Company 2,348,541 2,928,856 0 5,277,397
UNITIL Power Corp. 1,303,989 1,570,777 0 2,874,766
UNITIL Realty Corp. 24,211 30,106 0 54,317
UNITIL Resources, Inc. 40,516 47,614 0 88,130
TOTAL 5,811,660 7,123,620 0 12,935,280
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1997
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, 1997
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 5,055,117 828,965 5,884,082
921 OFFICE SUPPLES AND EXPENSES 334,745 477,554 812,299
922 ADMIN EXPENSE TRANS-CREDIT (51,631) (51,631)
923 OUTSIDE SERVICES EMPLOYED 863,769 863,769
924 PROPERTY INSURANCE 3,524 3,524
925 INJURIES AND DAMAGES 27,449 27,449
926 EMPLOYEE PENSIONS AND BENEFITS 1,404,858 1,404,858
928 REGULATORY COMMISSION EXPENSE 0 0
930.1 GENERAL ADVERTISING EXPENSE 775,607 775,607
930.2 MISC. GENERAL EXPENSE (59,604) (59,604)
931 RENTS 1,482,496 1,482,496
932 MAINT. OF STRUCT. & EQUIP. 421,798 (84,122) 337,676
403 DEPR. AND AMORT. EXPENSE 785,609 705,609
408 TAXES OTHER THAN INCOME 402,731 402,731
409 INCOME TAXES 53,612 53,612
410 PROV FOR DEF INC TAXES (53,727) (53,727)
411 PROV FOR DEF INC TAX CREDIT 0
411.5 INVESTMENT TAX CREDIT 0
419 INTEREST INCOME (11,369) (11,369)
426.1 DONATIONS 5,046 5,046
426.5 OTHER DEDUCTIONS 18 18
427 INTEREST ON LONG-TERM DEBT 0
431 OTHER INTEREST EXPENSE 229,390 229,390
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 5,811,660 7,080,174 12,891,834
COMPENSATION FOR USE OF EQUITY CAPITAL 0
430 INTEREST ON DEBT TO ASSOCIATE CO.'S 0 43,446 43,446
TOTAL EXPENSES 5,811,660 7,123,620 12,935,280
421 MISCELLANEOUS INCOME 0 0 0
TOTAL COST OF SERVICE 5,811,660 7,123,620 12,935,280
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 5,055,117 858,965 5,914,082
921 OFFICE SUPPLES AND EXPENSES 334,745 477,554 812,299
922 ADMIN EXPENSE TRANS-CREDIT 0 (51,631) (51,631)
923 OUTSIDE SERVICES EMPLOYED 863,769 863,769
924 PROPERTY INSURANCE 3,524 3,524
925 INJURIES AND DAMAGES 27.449 27,449
926 EMPLOYEE PENSIONS AND BENEFITS 1,404,858 1,404,858
928 REGULATORY COMMISSION EXPENSE 0 0
930.1 GENERAL ADVERTISING EXPENSE 775,607 775,607
930.2 MISC. GENERAL EXPENSE (59,604) (59,604)
931 RENTS 1,482,496 1,482,496
932 MAINT. OF STRUCT. & EQUIP. 421,798 (84,122) 337,676
403 DEPR. AND AMORT. EXPENSE 785,609 785,609
408 TAXES OTHER THAN INCOME 402,731 402,731
409 INCOME TAXES 53,612 53,612
410 PROV FOR DEF INC TAXES (53,727) (53,727)
411 PROV FOR DEF INC TAX CREDIT 0 0
411.5 INVESTMENT TAX CREDIT 0 0
419 INTEREST INCOME (11,369) (11,369)
426.1 DONATIONS 5,046 5,046
426.5 OTHER DEDUCTIONS 18 18
427 INTEREST ON LONG-TERM DEBT 0 0
431 OTHER INTEREST EXPENSE 229,390 229,390
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 5,811,660 7,110,174 12,921,834
COMPENSATION FOR USE OF EQUITY CAPITAL 0
430 INTEREST ON DEBT TO ASSOCIATE CO.'S 0 43,446 43,446
TOTAL EXPENSES 5,811,660 7,153,620 12,965,280
421 MISCELLANEOUS INCOME 0 0 0
TOTAL COST OF SERVICE 5,811,660 7,153,620 12,965,280
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1997
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 5,914,082 973,888 567,766
921 OFFICE SUPPLES AND EXPENSES 812,299 62,698 318,456
922 ADMIN. EXPENSE TRANS-CREDIT (51,631)
923 OUTSIDE SERVICES EMPLOYED 863,769 106,403 6,282
924 PROPERTY INSURANCE 3,524
925 INJURIES AND DAMAGES 27,449
926 EMPLOYEE PENSIONS AND BENEFITS 1,404,858 446 3,603
928 REGULATORY COMMISSION EXPENSE 0
930.1 GENERAL ADVERTISING EXPENSE 775,607 744,670 30,363
930.2 MISC. GENERAL EXPENSE (59,604)
931 RENTS 1,482,496 1,546,791
932 MAINT. OF STRUCT. & EQUIP. 337,676 192,241
403 DEPR. AND AMORT. EXPENSE 785,609
408 TAXES OTHER THAN INCOME 402,731
409 INCOME TAXES 53,612
410 PROV. FOR DEF. INC. TAXES (53,727)
411 PROV. FOR DEF. INC. TAX CREDIT 0
411.5 INVESTMENT TAX CREDIT 0
426.1 DONATIONS 5,046
426.5 OTHER DEDUCTIONS 18
427 INTEREST ON LONG-TERM DEBT 0
430 INTEREST ON DEBT TO ASSOCIATE
COMPANIES 43,446
431 OTHER INTEREST EXPENSE 229,390
INSTRUCTIONS: Indicate each
department or
service function. (see Instruction
01-3 General Structure of Account-
ing System Uniform System Account.
TOTAL EXPENSES - 12,976,649 1,888,104 2,665,502
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1997
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
DEPARTMENT OR SERVICE FUNCTION
ACCOUNT ENERGY CUSTOMER
NUMBER ACCOUNTING RESOURCES DISTRIBUTION FINANCE AFFAIRS ENGINEERING TECHNOLOGY
920 660,419 614,637 237,834 1,164,628 690,226 678,553 326,131
921 68,695 82,426 3,716 50,131 41,015 35,548 149,614
922 (51,631)
923 16,558 137,926 435,772 142,550 1,485 16,793
924 3,524
925 27,449
926 3,045 12,419 1,381,796 759 2,790
928
930.1 574
930.2 (239,922) 26,296 152,008 2,014
931 (971,511) 607 1,050 16,449 374,280 4,453 510,377
932 27,208 19,366 64,313 552 33,996
403 785,609
408 402,731
409 53,612
410 (53,727)
411
411.5
426.1 5,046
426.5 18
427
430 43,446
431 229,390
706,150 874,885 242,600 3,523,959 1,314,398 721,350 1,039,701
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1997
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 973,889 0 973,889 0 21
Technology 326,131 0 326,131 0 8
Accounting 660,419 0 655,619 4,800 22
Finance 1,164,628 0 1,164,028 600 8
Administrative 567,766 0 544,066 23,700 16
Energy Resources 614,637 0 614,637 0 12
Engineering 678,553 0 678,553 0 10
Distribution 237,834 0 237,834 0 1
Customer Affairs 690,226 0 689,326 900 36
TOTAL 5,914,083 0 5,884,083 30,000 134
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1997
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 - Accounting
Various NA 7,400
Outside Services - Consulting
Charles H. Tenney II A 105,000
Outside Services-Legal
LaBouef, Lamb, Greene & Macrae NA 120,036
Various NA 2,764
Outside Services - Other
Various NA 327,561
Venture Profiles 27,600
The Hay Group 37,240
Russell Reynolds 146,980
Kelly Services 89,187
TOTAL 863,769
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1997
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 608,125
Net Periodic Pension Expense 291,888
401 K 144,497
Life Insurance 72,022
Other 172,607
Supplemental Executive Retirement Plan 112,000
FASB 106 3,719
TOTAL 1,404,858
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1997
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 30,363
Advertising Luma & Cahill 669,755
Advertising Ingalls Advertising 52,000
Advertising Other 23,489
TOTAL 775,607
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1997
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 169,710
SEC Filing Fees 608
Reimbursable Move Costs (234,922)
Company Dues 5,000
TOTAL (59,604)
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1997
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 1,359,772
EDP Equipment, Miscellaneous 122,724
TOTAL 1,482,496
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1997
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 7,918
State Unemployment Tax - NH 1,947
9,865
U.S. Government Tax:
Federal Telephone & Telegram Tax 3,658
Federal Insurance Contribution Act 381,784
Federal Unemployment Tax 7,424
392,866
TOTAL 402,731
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1997
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 5,046
TOTAL 5,046
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1997
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 11
Lobbying Expenses American Institute of CPA's 7
TOTAL 18
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1997
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, 1997
SCHEDULE XIX - FINANCIAL DATA SCHEDULE
ITEM NO. CAPTION HEADING AMOUNT
1 Net Service Company Property 2,997,332
2 Total Investments 0
3 Total Current and Accrued Assets 2,702,718
4 Total Deferred Debits 1,288,227
5 Balancing Amount for Total Assets and Other Debits 0
6 Total Assets and Other Debits 6,988,277
7 Total Proprietary Capital 2,688
8 Total Long-Term Debt 0
9 Notes Payable 0
10 Notes Payable to Associate Companies 1,816,986
11 Balancing Amount for Total Current and Accrued Liabilities 3,665,924
12 Total Deferred Credits 0
13 Accumulated Deferred Income Taxes (720,919)
14 Total Liabilities and Proprietary Capital 6,988,277
15 Service Rendered to Associate Companies 12,935,280
16 Service Rendered to Nonassociate Companies 30,000
17 Miscellaneous Income or Loss 11,369
18 Total Income 12,976,649
19 Salaries and Wages 5,914,082
20 Employee Pensions and Benefits 1,404,858
21 Balancing Amount for Total Expenses 5,657,709
22 Total Expenses 12,976,649
23 Net Income (Loss) 0
24 Total Expenses (Direct Costs) 5,811,660
25 Total Expenses (Indirect Costs) 7,164,989
26 Total Expenses (Total) 12,976,649
27 Number of Personnel End of Year 134
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1997
ORGANIZATION CHART
See page 37A.
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1997
ORGANIZATION CHART AS OF DECEMBER 31, 1997
President and Chief Executive Officer Schoenberger
Senior Executive Vice President - Energy Distribution Dalton
Vice President - Engineering and Operations Appleton
Senior Executive Vice President - Energy Markets Daly
Assistant Vice President - Sales and Marketing Zabetakis
Vice President - Energy Procurement Foote
Vice President - Technology Smith
Vice President - Finance & Collin
Vice President and Controller Brock
Vice President - Customer Services Morrissey
Senior Vice President - Communication & Regulation Gantz
Vice President - Communication & Regulation Stewart
Assistant Vice President -Regulatory Energy Soares
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1997
METHODS OF ALLOCATION
See Page 38A
ANNUAL REPORT OF UNITIL SERVICE CORP.
FORM U-13-60
For the Year Ended December 31, 1997
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, 1997
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, 1997
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: