[Federal Register Volume 59, Number 181 (Tuesday, September 20, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-23164]
[[Page Unknown]]
[Federal Register: September 20, 1994]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
17 CFR Part 259
[Release No. 35-26124; File No. S7-27-94]
RIN 3235-AG05
Annual Reports by Mutual and Subsidiary Service Companies Under
the Public Utility Holding Company Act of 1935
AGENCY: Securities and Exchange Commission (``Commission'').
ACTION: Proposed amendments to form and request for comment.
-----------------------------------------------------------------------
SUMMARY: The Commission is requesting public comment upon proposed
amendments to Form U-13-60, the annual report filed by service company
subsidiaries of registered holding companies under the Public Utility
Holding Company Act of 1935 (``Act''). The proposed amendments would
clarify the requirements for these reports and improve the disclosure
of financial, accounting and operational information.
DATES: Comments must be submitted on or before November 21, 1994.
ADDRESSES: Comments should be submitted in triplicate to Jonathan G.
Katz, Secretary, Securities and Exchange Commission, 450 Fifth Street,
N.W., Mail Stop 6-9, Washington, D.C. 20549. Comment letters should
refer to File No. S7-27-94. All comment letters received will be made
available for public inspection and copying in the Commission's Public
Reference Room, 450 Fifth Street, N.W., Washington, D.C. 20549.
FOR FURTHER INFORMATION CONTACT: Brian P. Spires, Attorney, (202) 942-
0557, Joanne C. Rutkowski, Assistant Director, (202) 942-0545, Robert
P. Wason, Chief Financial Analyst, (202) 942-0543, or David E. Marsh,
Accountant, (202) 942-0558, Office of Public Utility Regulation,
Division of Investment Management, Securities and Exchange Commission,
450 Fifth Street, N.W., Washington, D.C. 20549.
SUPPLEMENTARY INFORMATION: The Commission is requesting comment on
proposed amendments to Form U-13-60 [17 CFR Part 259] under the Act [15
U.S.C. 79 et seq.]. The Annual Report for Mutual and Subsidiary Service
Companies on Form U-13-60 was adopted December 29, 1939 and last
revised on February 22, 1980 (Holding Co. Act Release No. 21447).
I. Introduction
Service company subsidiaries of registered holding companies serve
the needs of associate companies by providing managerial,
administrative, technical and other services. Section 13(b) of the Act
requires that contracts by which service companies perform services or
construction work for, or sell goods to, associate companies must be
performed at cost, fairly and equitably allocated among such
companies.1
---------------------------------------------------------------------------
\1\``Service company'' is not a defined term under the Act.
Rather, a service company is a subsidiary company of a registered
holding company that the Commission has found, pursuant to rule 88,
to be ``so organized and conducted . . . as to meet the requirements
of section 13(b) of the Act with respect to reasonable assurance of
efficient and economical performance of services or construction or
sale of goods for the benefit of associate companies, at cost fairly
and equitable allocated among them (or as permitted by [rule] 90).''
Under rule 90, these transactions are generally conducted at cost.
Rule 92, however, applies a lower-of-cost-or market standard to
transfers of seller-produced goods.
---------------------------------------------------------------------------
Commission rules set forth accounting and reporting requirements
with respect to these intrasystem transactions. Under rule 93, the
accounts and records of a service company subsidiary of a registered
holding company must be consistent with the accounts required by the
Uniform System of Accounts for Mutual and Subsidiary Service Companies
(``Uniform System of Accounts'').2 Rule 94 requires the filing of
an annual report on Form U-13-60 by every service company.3
---------------------------------------------------------------------------
\2\The Uniform System of Accounts [17 CFR 256] was adopted May
12, 1936 and amended February 2, 1979 (Holding Co. Act Release No.
20910). See also 17 CFR 250.93, 250.94.
\3\See Holding Co. Act Release No. 1858 (Dec. 29, 1939)
(adopting Form U-13-60); Holding Co. Act Release No. 21447 (Feb. 22,
1980) (amendment).
---------------------------------------------------------------------------
On November 4, 1992, the Commission, as part of its efforts to
update and streamline regulation under the Act, proposed certain
amendments to Form U-13-60.4 The proposed amendment was intended
to provide the service companies with the flexibility to use accounts
from the Uniform System of Accounts of the Federal Energy Regulatory
Commission (``FERC System of Accounts'') in preparing the Form U-13-
60.5
---------------------------------------------------------------------------
\4\See Holding Co. Act Release No. 25668, 57 FR 54025 (Nov. 16,
1992).
\5\The FERC System of Accounts prescribes a system of accounting
for electric-utility companies under the Federal Power Act and
natural gas companies under the Natural Gas Act.
The Commission's Uniform System of Accounts prescribes a system
of accounting specifically for service companies in order to, among
other things, track reimbursable costs and charges to customers and
account for compensation for use of capital.
---------------------------------------------------------------------------
The Commission received six comment letters addressing the proposed
form amendment.6 Several commenters noted with approval the
purpose of the amendment to provide additional flexibility. The
commenters observed that because the Uniform System of Accounts does
not always contain accounts needed to classify properly charges
incurred, the service companies are obliged to use accounts from the
FERC System of Accounts or classify certain categories of costs
improperly.7 One commenter stated that, at present, service
companies are effectively required to maintain two sets of books, one
using the Uniform System of Accounts, the other using the FERC System
of Accounts.8 The commenter stated that the proposed amendments
would greatly simplify the accounting system and permit service
companies to classify costs more accurately.
---------------------------------------------------------------------------
\6\The six commenters were five registered holding companies,
American Electric Power Company (``AEP''), The Columbia Gas System,
Inc. (``Columbia''), Consolidated Natural Gas Company (``CNG''),
Northeast Utilities (``Northeast''), and New England Electric System
(``NEES''), and one service company subsidiary of a registered
holding company, EUA Service Corporation (``EUA'').
\7\See, e.g., EUA.
\8\See NEES at 2-3.
---------------------------------------------------------------------------
Other commenters, however, were concerned as to how the
Commission's proposal would harmonize the FERC System of Accounts with
the Commission's Uniform System of Accounts. These commenters asked
that the Commission clarify its proposal. In view of these comments,
the Commission is today resubmitting the proposal for public comment.
In response to these comments and upon further consideration, the
Commission has modified its proposal. Initially, the Commission had
requested comments on the need to amend the Uniform System of Accounts
to reflect the proposed changes to Form U-13-60. On balance, however,
it does not appear necessary to amend the Commission's Uniform System
of Accounts in the event that Form U-13-60 is amended. The Commission's
Uniform System of Accounts follows the FERC System of Accounts, with
modifications, and contemplates that accounts and financial statements
of service companies will comply with that system.9 As the
commenters suggest, the proposed amendments to Form U-13-60 will
effectively incorporate in the Uniform System of Accounts additional
accounts corresponding to the FERC System of Accounts.10
---------------------------------------------------------------------------
\9\Specifically, Sec. 256.01-7(g) provides:
The Uniform System of Accounts promulgated by the Federal Energy
Regulatory Commission, as amended from time to time, and the
interpretations thereof adopted from time to time by the Federal
Energy Regulatory Commission, . . . shall be complied with unless
expressly inconsistent with the requirements of this system.
17 CFR 256.01-7(g).
\1\0See CNG, EUA and NEES.
---------------------------------------------------------------------------
The Commission has modified its proposal to add several new
schedules to Form U-13-60 and to modify the existing schedules by
adding new accounts and other requirements. The amendments are intended
to result in more detailed disclosure of certain categories of
information, and to ensure generally that accounting for services
rendered to a system utility is consistent with the accounting for such
expenses on the utility's balance sheet and income statement. In
addition, the amendments will reduce some regulatory burdens by
creating or modifying dollar thresholds for reporting purposes and by
simplifying the reporting requirements.11
---------------------------------------------------------------------------
\1\1The amendments will also make certain changes in format to
facilitate Commission review, and various other minor conforming
revisions.
---------------------------------------------------------------------------
The various accounts proposed to be added to Form U-13-60
correspond, in each instance, to accounts under the FERC System of
Accounts.
A. Instructions for Use of Form U-13-60
The Commission proposes to amend the instructions to provide that
use of the new accounts is mandatory. The Commission has considered
whether the use of the new accounts should be discretionary or
mandatory. On the one hand, the mandatory use of these accounts could
entail additional expense for some companies.12 On the other hand,
a requirement of mandatory use would help to ensure fuller
identification of charges to facilitate accounting by the associate
companies and regulatory examination. The Commission believes that the
goal of improved disclosure should prevail, but invites particular
comment on this aspect of the proposed amendments.
---------------------------------------------------------------------------
\1\2It would, however, conform to the current accounting
practice of others.
---------------------------------------------------------------------------
In addition, the amended instructions would require service company
charges to be presented in the accompanying schedules on an ``as
billed'' basis.13 At present, the costs of a transaction may be
classified differently on the financial statements of its associate
company customers. For example, salary expenses associated with the
construction of a transmission line may be classified as expenses on
the income statement of the service company but as capital items on the
balance sheet of the associate company. Consistent treatment of these
items should aid ratemakers and others in identifying service company
charges on the financial statements of associate public-utility
companies. The Commission requests comment, in particular, on the need
for a phase-in period of up to three years for this requirement.
---------------------------------------------------------------------------
\1\3``As billed'' refers to the treatment of an item on the
financial statements of an associate company customer.
---------------------------------------------------------------------------
B. Schedule II, Service Company Property
The Commission proposes to add a new Account 101.1--Property Under
Capital Leases to this schedule.14 Capitalized lease assets are
not currently reported in Form U-13-60. The amendment is necessary to
provide disclosure concerning this significant category of service
company property. There would be a corresponding amendment to Schedule
I, the balance sheet.15
---------------------------------------------------------------------------
\1\4A capital lease is defined in Paragraphs 6(a) and 7 of the
Statement of Financial Accounting Standards No. 13, Accounting for
Leases, as a lease meeting one of four specified criteria concerning
economic indicia of ownership. The criteria include length of lease
term, present value of lease payments, and provision for transfer or
purchase of the underlying asset at the lease term.
\1\5A capital lease generally is recorded on a company's balance
sheet both as an asset and as a corresponding liability.
---------------------------------------------------------------------------
C. Schedule IV, Investments
Currently, Schedule IV contains three accounts: Account 123--
Investment in Associate Companies; Account 124--Other Investments; and
Account 136--Temporary Cash Investments. The Commission proposes to add
a new Account 128--Other Special Funds. Account 128 would include
investments that have been segregated in special funds for insurance,
employee pensions, savings, relief, hospital, and other purposes not
provided for elsewhere. The proposed amendment would provide detail,
currently lacking, with respect to these investments.
D. Schedule V, Accounts Receivable
Schedule V requires the reporting of accounts receivable from
associate companies in Account 146--Accounts Receivable From Associate
Companies. The Commission is proposing to amend the instructions to
Schedule V to require identification of associate company receivables
that have been outstanding for 60-90 days and for more than 90 days
from the due date. Companies that do not pay in a timely manner are
effectively subsidized by the other system companies that do timely
pay. The Commission believes that the proposed amendment will encourage
service companies to adopt administrative controls to ensure that
receivables are collected within ninety days.
The Commission has proposed a $25,000 threshold for reporting under
this account but requests comment on whether a higher threshold, such
as a $50,000 limit, as suggested by AEP, would be more appropriate.
In addition, the Commission is proposing to amend Schedule V to add
a new Account 143 that would require the reporting of accounts
receivable from nonassociate companies, to provide more complete
information in this area.
E. Schedule XIV, Statement of Income
This schedule, currently under Schedule XV, requires the reporting
of the income and expenses of the service company. Because the schedule
does not contain any balance sheet accounts, a service company cannot
necessarily report an item in a manner consistent with its treatment on
the books of the associate company customer. As a result, commenters
have noted that service companies are effectively required to maintain
two sets of books, one for purposes of Form U-13-60 and the Uniform
System of Accounts, and another to comply with the FERC System of
Accounts.16 The Commission is concerned that the current system
results in unnecessary expense and duplication of effort for system
companies.
---------------------------------------------------------------------------
\1\6See supra note 8 and accompanying text.
---------------------------------------------------------------------------
Accordingly, the Commission proposes to include two categories of
expenses, one relating to the income statement and the other relating
to the balance sheet. A number of new accounts would be added to the
present income statement accounts. Specifically, the amendment would
add new Accounts 500-557--Power Production, Accounts 560-598--
Transmission & Distribution Expenses, Accounts 901-905--Customer
Accounts, and Accounts 906-917--Customer Service & Information. New
accounts would also be added in Accounts 927--935--Other Administrative
and General Expenses, Accounts 403--407--Depreciation and Amortization,
Accounts 409--411.4--Income Taxes, Accounts 426.1--426.5--Other
Deductions, and Accounts 427--431--Interest Expense. In addition, the
amended schedule would include the following balance sheet accounts:
Account 107--Construction Work in Progress, Accounts 108-115--
Accumulated Provision for Depreciation, Account 163--Store Expenses
Undistributed, Account 174--Miscellaneous Current & Accrued Assets,
Account 183--Preliminary Engineering, Account 186--Miscellaneous
Deferred Debits, Account 188--Research & Development, and an unnumbered
account for other balance sheet expenses. The Commission also proposes
to add a new income account, Account 419--Interest Income.
F. Schedule XV, Analysis of Charges-Direct vs. Indirect
Under the current schedule, service companies must report the
amount of charges to associate and nonassociate companies, and
categorize the charges as either direct (i.e., a charge for a specific
service provided to a customer) or indirect (i.e., an allocated charge
for an overhead expense of the service company). The Commission
proposes to amend the schedule to require consistent treatment of a
charge on the books of the service company and its associate company
customers, to eliminate unnecessary expense and duplication of effort
in system company accounting.
G. Schedule XX, Other Administrative & General Expenses
Account 930.1--General Advertising Expenses and Account 930.2--
Miscellaneous General Expenses are currently reported in separate
unnumbered schedules. The Commission has found that separate reporting
for these items is unnecessary since historically the amounts involved
have been immaterial. The Commission proposes to combine the existing
schedules in a new Schedule XX which would require a detailed
description of these expenses and other service company billings
corresponding to Accounts 927-935 of the FERC System of
Accounts.17
---------------------------------------------------------------------------
\1\7See 18 CFR 101, 201; 17 CFR 256 (the FERC System of Accounts
and the Uniform System of Accounts, respectively).
---------------------------------------------------------------------------
H. Schedule XXII, Other Deductions
The Commission proposes to combine the requirements of Account
426.1--Donations, and Account 426.5--Other Deductions, and add Account
426.2--Life Insurance, Account 426.3--Penalties, and Account 426.4--
Expenditures for Certain Civic, Political and Related Activities in a
new Schedule XXII.
The new schedule would require more detailed reporting in Account
426.5 to the extent that the annual aggregate amount of other
deductions exceeded $25,000. The Commission believes that $25,000 is an
appropriate threshold but requests comment on the need for a higher or
lower threshold.
In addition, the Commission proposes to modify the reporting
requirement for Account 408--Taxes, Other than Income Taxes. Based on
its experience in this area, the Commission believes it is appropriate
to eliminate the requirement of detailed reporting. Instead, the
account will appear as a single line item on proposed Schedule XIV, the
income statement.
I. Schedule XXIII, Miscellaneous Income or Loss
Schedule XV, the current income statement, requires the reporting
of income or loss other than from services rendered to associate and
nonassociate companies in Account 421--Miscellaneous Income or Loss.
Although significant amounts of income and loss have been reported in
this account, service companies at present are not required to disclose
the source of the income or the cause of the loss. To obtain such
information, the Commission proposes to create a new Schedule XXIII
that will require a detailed description of the items contained in
Account 421.
J. Schedule XXIV, Interest Expense
Interest expense is reported on present Schedule XV in Account
427--Interest on Long-Term Debt, Account 430--Interest on Debt to
Associate Companies, and Account 431--Other Interest Expense, and on
Schedule I, the balance sheet, in Account 237--Interest Accrued. The
Commission proposes to create a new Schedule XXIV that would
differentiate between long and short term debt interest expense, and
require more detailed information concerning the debt and debt holders.
The new schedule will enable the Commission to monitor the overall cost
of capital of the service companies.
K. Schedule XXV, Notes to Financial Statements
The notes to financial statements and notes to statement of income
are furnished in current Schedules XIV and XVIII, respectively. The
Commission believes it is more appropriate for the notes to appear in a
single schedule, and so proposes to create a new Schedule XXV for this
purpose.
L. Schedule XVIII, Outside Services Employed
The Commission also proposes to amend this schedule to require
separate itemizations of legal, auditing and other services.
M. Other Matters
The Commission proposes to amend certain schedules to include a
footnote that the amounts referenced in these schedules include charges
to both income statement and balance sheet accounts. The footnotes
would cross-reference the expenses related to the income statement of
new Schedule XIV for a more particular breakdown of these expense
items.18
---------------------------------------------------------------------------
\1\8See, e.g., Schedule XVII (Departmental Analysis of
Salaries), Schedule XVIII (Outside Services Employed), Schedule XIX
(Employee Pensions and Benefits), and Schedule XXI (Rents).
---------------------------------------------------------------------------
Finally, certain schedules would be renumbered, and the format of
some items slightly changed.
II. Regulatory Flexibility Act Certification
Pursuant to section 605(b) of the Regulatory Flexibility Act, 5
U.S.C. 605(b), the Chairman of the Commission has certified that the
proposed amended Form will not, if adopted, have a significant economic
impact on a substantial number of small entities. This certification,
including the reasons therefor, is attached to this release.
III. Costs and Benefits
The proposed amendments to Form U-13-60 would enable the seventeen
service company subsidiaries of registered holding companies to prepare
income statements and balance sheets that properly reflect the
accounting of the billings to their utility customers. The enhanced
ability to properly classify billings should ease the record keeping
burdens presently incurred by the service companies and would permit
service companies to classify costs more accurately.
In addition, the proposed amendments would provide the service
companies the flexibility to use FERC Accounts as appropriate given the
nature of the services provided their customers. The Commission
anticipates that these benefits will reduce the accounting costs of a
service company by $10,000 to $20,000 per year.
IV. Paperwork Reduction Act
The proposed amended Form U-13-60 is subject to the Paperwork
Reduction Act and will be submitted to the Office of Management and
Budget.
V. Statutory Authority
The Commission is proposing amendments to Form U-13-60 pursuant to
sections 14, 15, and 20(a) [15 U.S.C. 79n, 79o, 79t(a)] of the Act. The
authority citation for the action precedes the text.
List of Subjects in 17 CFR Part 259
Utilities.
Text of Proposed Form Amendment
For the reasons set out in the preamble, the Commission is
proposing to amend chapter II, Title 17 of the Code of Federal
Regulations as follows:
PART 259--FORMS PRESCRIBED UNDER THE PUBLIC UTILITY HOLDING COMPANY
ACT OF 1935
1. The authority citation for Part 259 continues to read as
follows:
Authority: 15 U.S.C. 79e, 79f, 79g, 79j, 79l, 79m, 79n, 79q,
79t.
Subpart D--Forms for Periodic Accounting Reports
Note: Form U-13-60 does not and the amendments will not appear
in the Code of Federal Regulations.
* * * * *
2. Form U-13-60 (referenced in Sec. 259.313) is amended by adding
instruction 12 to Instructions For Use Of Form U-13-60 to read as
follows:
FORM U-13-60
* * * * *
Instructions for Use of Form U-13-60
* * * * *
12. Account Numbers--The accompanying schedules shall be prepared
reflecting the Commission's Uniform System of Accounts, as modified.
The service company shall present the schedules on an ``as billed''
basis and so designate. The accompanying schedules include certain
accounts which may not be applicable, depending on the presentation
basis designated.
* * * * *
3. Form U-13-60 (referenced in Sec. 259.313) is amended by revising
the ``Listing of Schedules and Analysis of Accounts'' to read as
follows:
FORM U-13-60
* * * * *
Listing of Schedules
------------------------------------------------------------------------
Description of schedules Schedule No. Page No.
------------------------------------------------------------------------
COMPARATIVE BALANCE SHEET....... Schedule I............... ...........
Service company property...... Schedule II.............. ...........
Accumulated provision for Schedule III............. ...........
depreciation and amortization
of service company property.
Investments................... Schedule IV.............. ...........
Accounts receivable........... Schedule V............... ...........
Fuel stock expenses Schedule VI.............. ...........
undistributed.
Stores expense undistributed.. Schedule VII............. ...........
Miscellaneous current and Schedule VIII............ ...........
accrued assets.
Miscellaneous deferred debits. Schedule IX.............. ...........
Research, development, or Schedule X............... ...........
demonstration expenditures.
Proprietary capital........... Schedule XI.............. ...........
Long-term debt................ Schedule XII............. ...........
Current and accrued Schedule XIII............ ...........
liabilities.
COMPARATIVE INCOME STATEMENT.... Schedule XIV............. ...........
Analysis of billing--associate Schedule 457............. ...........
companies.
Analysis of billing-- Schedule 458............. ...........
nonassociate companies.
Analysis of charges for Schedule XV.............. ...........
service--associate and
nonassociate companies.
Schedule of expense Schedule XVI............. ...........
distribution by department or
service function.
Departmental analysis of Schedule XVIII........... ...........
salaries.
Outside services employed..... Schedule XVIII........... ...........
Employee pensions and benefits Schedule XIX............. ...........
Other Administrative & General Schedule XX.............. ...........
expenses.
Rents......................... Schedule XXI............. ...........
Other Deductions.............. Schedule XXII............ ...........
Miscellaneous Income or Loss.. Schedule XXIII........... ...........
Interest Expense.............. Schedule XXIV............ ...........
Notes to Financial Statements. Schedule XXV............. ...........
------------------------------------------------------------------------
Listing of Instructional Filing Requirements
------------------------------------------------------------------------
Description of reports or statements Page No.
------------------------------------------------------------------------
Organization Chart Methods of Allocation................... ...........
Annual Statement of Compensation for Use of Capital Billed. ...........
------------------------------------------------------------------------
* * * * *
4. Schedule I, Comparative Balance Sheet, of Form U-13-60
(referenced in Sec. 259.313) is amended by revising the heading; by
adding ``101.1 Property Under Capital Leases (Schedule II)'' under the
heading ``SERVICE COMPANY PROPERTY''; by adding ``128 Other Special
Funds (Schedule IV)'' under the heading ``INVESTMENTS''; by revising
``141 Notes receivable'' and ``143 Accounts receivable'' under the
heading ``CURRENT AND ACCRUED ASSETS'' to read ``141 Notes receivable
from associate companies'' and ``143 Accounts receivable (Schedule
V)''; by adding ``243 Obligations under capital lease--current'' under
the heading ``CURRENT AND ACCRUED LIABILITIES''; revising the heading
``DEFERRED CREDITS'' to read ``DEFERRED CREDITS & OTHER NON-CURRENT
LIABILITIES''; and adding under the heading ``227 Obligations under
capital lease--noncurrent'' and ``228.3 Accumulated provision for
pension and benefits,'' to read as follows:
FORM U-13-60
* * * * *
Schedule I--Comparative Balance Sheet
Give balance sheet of Company as of December 31 of the current and
prior year
* * * * *
Service Company Property
* * * * *
101. I Property Under Capital Leases (Schedule II)
* * * * *
Investments
* * * * *
128 Other Special Funds (Schedule IV)
* * * * *
Current and Accrued Assets
* * * * *
141 Notes receivable from associate companies
143 Accounts receivable (Schedule V)
* * * * *
Current and Accrued Liabilities
* * * * *
243 Obligations under capital lease--current
* * * * *
Deferred Credits & Other Non-Current Liabilities
227 Obligations under capital lease--non-current
228.3 Accumulated provision for pension and benefits
* * * * *
5. Schedule II, Service Company Property, of Form U-13-60
(referenced in Sec. 259.313) is amended by revising the heading; adding
``Account 101.1--Property Under Capital Leases\4\'' under ``SUB-
TOTAL''; and redesignating note\4\ as note\5\, to read as follows:
FORM U-13-60
* * * * *
Annual Report of
For the Year Ended December 31, 199X
(In Thousands of Dollars)
Schedule II
Service Company Property
* * * * *
Account
* * * * *
Sub-Total
101.1 Property Under Capital Leases\4\
107 Construction Work In Progress\5\
* * * * *
\4\Describe Property Under Capital Leases.
\5\Describe Construction Work in Progress.
6. Schedule IV, Investments, of Form U-13-60 (referenced in
Sec. 259.313) is amended by revising the instructions, by adding
``ACCOUNT 128--OTHER SPECIAL FUNDS'' and by adding ``TOTAL'' under each
account, to read as follows:
FORM U-13-60
* * * * *
Schedule IV--Investments
Instructions: Complete the following schedule concerning
investments.
For Account 123, ``Investment in Associate Companies,'' describe
investments in associate companies.
Under Account 124, ``Other Investments'' and Account 128, ``Other
Special Funds'' state each investment separately, with description,
including, the name of issuing company, number of shares or principal
amount, etc.
Under Account 136, ``Temporary Cash Investments,'' list each
investment separately.
* * * * *
Account 123--Investment in Associate Companies
Total
Account 124--Other Investments
Total
Account 128--Other Special Funds
Total
Account 136--Temporary Cash Investments
Total
7. Schedule V, Accounts Receivable From Associate Companies, of
Form U-13-60 (referenced in Sec. 259.313) is revised to read as
follows:
FORM U-13-60
* * * * *
Annual Report of
For the Year Ended December 31, 199X
(In Thousands of Dollars)
Schedule V--Accounts Receivable
Instructions: Complete the following schedule listing total
accounts receivable and aging of amounts outstanding over 90 days from
the due date and list separately those amounts over $25,000.
------------------------------------------------------------------------
Balance at Balance at
beginning close of
of year year
------------------------------------------------------------------------
Description................................... ........... ...........
Account 143--Accounts Receivable.............. ........... ...........
------------------------------------------------------------------------
Accounts Receivable Outstanding Over 90 Days
------------------------------------------------------------------------
Entity Amount
------------------------------------------------------------------------
...........
------------
Total...................................................... ...........
============
------------------------------------------------------------------------
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. Provide an aging of all amounts
outstanding 60-90 days and over 90 days from the due date in the space
provided below.
------------------------------------------------------------------------
Balance at Balance at
beginning close of
of year year
------------------------------------------------------------------------
Description
Account 146--Accounts Receivable From
Associate Companies........................ ........... ...........
-------------------------
Total..................................... ........... ...........
=========================
------------------------------------------------------------------------
------------------------------------------------------------------------
Total
Analysis of convenience or accommodation payments payments
------------------------------------------------------------------------
...........
------------
Total payments........................................... ...........
============
------------------------------------------------------------------------
Aging of Accounts Receivable
------------------------------------------------------------------------
Days outstanding
Entity --------------------------------------
60-90 Over 90 Total
------------------------------------------------------------------------
........... ........... ...........
--------------------------
Total............................ ........... ........... ...........
==========================
------------------------------------------------------------------------
8. Schedule XIII, Current and Accrued Liabilities, of Form U-13-60
(referenced in Sec. 259.313) is amended by revising the instructions to
read as follows:
FORM U-13-60
* * * * *
Schedule XIII--Current and Accrued Liabilities
* * * * *
Instructions: Provide balance of notes and accounts payable to each
associate company and provide a summary of short-term debt. Describe
and provide the amount of miscellaneous current and accrued
liabilities. Items less than $10,000 may be grouped, showing the number
of items in each group.
* * * * *
9. Schedule XIV, Notes to Financial Statements, of Form U-13-60
(referenced in Sec. 259.313) is removed and Schedule XV, Statement of
Income, is redesignated as Schedule XIV; Schedule XVI, Analysis of
Charges for Service--Associate and Nonassociate Companies, is
redesignated as Schedule XV; and Schedule XVII, Expense Distribution by
Department or Service Function, is redesignated as Schedule XVI. Newly
redesignated Schedule XIV is revised to read as follows (the separate
reporting of Account 457 ``Analysis of Billing--Associate Companies''
and Account 458 ``Analysis of Billing--Nonassociate Companies'' is
unchanged):
FORM U-13-60
* * * * *
Annual Report of
For the Year Ended December 31, 199X
(In Thousands of Dollars)
Schedule XIV--Statement of Income
Instructions: Provide Income Statement of the Company for the year
ended December 31, for the current year and the prior year. Indicate
whether the amounts shown have been ``billed to'' the account ranges
listed on the financial statements of associate companies.
Account Reference Current Prior
----------------------------------------------------------------------------------------------------------------
Range Description Column Year Year
----------------------------------------------------------------------------------------------------------------
Income............................................
457................. Services Rendered to Associate Companies.......... ............ ........... ...........
458................. Services Rendered to Nonassociated Companies...... ............ ........... ...........
421................. Miscellaneous Income or Loss...................... XXIII ........... ...........
419................. Interest Income................................... ............ ........... ...........
-------------------------------------------------------------------------------------------
Total Income...................................... ............ ........... ...........
EXPENSES-Income Statement:
500-557............. Power Production.................................. ............ ........... ...........
560-598............. Transmission & Distribution Expenses.............. ............ ........... ...........
901-905............. Customer Accounts................................. ............ ........... ...........
906-917............. Customer Service & Information.................... ............ ........... ...........
920................. Administrative & General Salaries................. ............ ........... ...........
921................. Office Supplies & Expenses........................ ............ ........... ...........
922................. Administrative Expenses Transferred--Credit....... ............ ........... ...........
923................. Outside Services Employed......................... XVIII ........... ...........
924................. Property Insurance................................ ............ ........... ...........
925................. Injuries & Damages................................ ............ ........... ...........
926................. Employee Pension & Benefits....................... XIX ........... ...........
927-935............. Other Administrative & General Expenses........... XX ........... ...........
403-407............. Depreciation & Amortization....................... ............ ........... ...........
408................. Taxes, Other Than Income.......................... ............ ........... ...........
409-411.4........... Income Taxes...................................... ............ ........... ...........
426.1-426.5......... Other Deductions.................................. XXII ........... ...........
427-431............. Interest Expense.................................. XXIV ........... ...........
-------------------------------------------------------------------------------------------
Total Expenses--Income Statement.................. ............ ........... ...........
EXPENSES--Balance Sheet:
107................. Construction Work in Progress..................... ............ ........... ...........
108-115............. Accumulated Provision for Depreciation............ ............ ........... ...........
163................. Stores Expenses Undistributed..................... ............ ........... ...........
174................. Miscellaneous Current & Accrued Assets............ ............ ........... ...........
183................. Preliminary Engineering........................... ............ ........... ...........
186................. Miscellaneous Deferred Debits..................... ............ ........... ...........
188................. Research & Development............................ ............ ........... ...........
Other............................................. ............ ........... ...........
-------------------------------------------------------------------------------------------
Total Expenses--Balance Sheet..................... ............ ........... ...........
NET INCOME OR (LOSS).............................. ............ ........... ...........
----------------------------------------------------------------------------------------------------------------
* * * * *
10. Newly designated Schedule XV of Form U-13-60 (referenced in
Sec. 259.313) is amended by revising the heading, adding a new
instruction, revising the heading ``Description of Items'' to read
``Description of Expenses,'' and revising the accounts below the
description, to read as follows:
FORM U-13-60
* * * * *
Schedule XV--Analysis of Charges--Direct vs. Indirect
Instruction: Provide a breakdown of ``Direct Costs'' vs. ``Indirect
Costs'' for charges appearing on the Income Statement for the current
year. Indicate whether amounts shown have been ``billed to'' the
account ranges listed.
* * * * *
------------------------------------------------------------------------
Account range Description of expenses
------------------------------------------------------------------------
EXPENSES--Income ........... ...........
Statement:.
500-557............. Power Production........ ........... ...........
560-598............. Transmission & ........... ...........
Distribution Expenses.
901-905............. Customer Accounts....... ........... ...........
906-917............. Customer Service & ........... ...........
Information.
920................. Administrative & General ........... ...........
Salaries.
921................. Office Supplies & ........... ...........
Expenses.
922................. Administrative Expenses ........... ...........
Transferred-Credit.
923................. Outside Services ........... ...........
Employed.
924................. Property Insurance...... ........... ...........
925................. Injuries & Damages...... ........... ...........
926................. Employee Pension & ........... ...........
Benefits.
927-935............. Other Administrative & ........... ...........
General Expenses.
403-407............. Depreciation & ........... ...........
Amortization.
408................. Taxes, Other Than Income ........... ...........
409-411.4........... Income Taxes............ ........... ...........
426.1-426.5......... Other Deductions........ ........... ...........
427-431............. Interest Expense........ ........... ...........
---------------------------------------------------
Total Expenses--Income ...........
Statement.
EXPENSES--Balance Sheet: ........... ...........
107................. Construction Work in ........... ...........
Progress.
108-115............. Accumulated Provision ........... ...........
for Depreciation.
163................. Stores Expenses ........... ...........
Undistributed.
174................. Miscellaneous Current & ........... ...........
Accrued Assets.
183................. Preliminary Engineering. ........... ...........
186................. Miscellaneous Deferred ........... ...........
Debits.
188................. Research & Development.. ........... ...........
188................. Other................... ........... ...........
---------------------------------------------------
Total Expenses Balance
Sheet.
------------------------------------------------------------------------
Net Expenses
11. Newly designated Schedule XVI of Form U-13-60 (referenced in
Sec. 259.313) is amended by revising the instruction, revising the
heading ``Description of items'' to read ``Description of Expenses'',
and revising the accounts below the description, to read as follows:
FORM U-13-60
* * * * *
Schedule XVI--Expense Distribution by Department or Service Function
Instructions: Provide distribution of expenses by department for
the year ended December 31, for the current year and the prior year.
Indicate whether amounts shown have been ``billed to'' the financial
statements of associate companies. (See Instructions 01-3 General
Structure of Accounting System: Uniform System of Accounts.)
------------------------------------------------------------------------
Account range Description of expenses
------------------------------------------------------------------------
Expenses--Income Statement.
500-557............. Power Production.
560-598............. Transmission & Distribution Expenses.
901-905............. Customer Accounts.
906-917............. Customer Service & Information.
920................. Administrative & General Salaries.
921................. Office Supplies & Expenses.
922................. Administrative Expenses Transferred--Credit.
923................. Outside Services Employed.
924................. Property Insurance.
925................. Injuries & Damages.
926................. Employee Pension & Benefits.
927-935............. Other Administrative & General Expenses.
403-407............. Depreciation & Amortization.
408................. Taxes, Other Than Income.
409-411.4........... Income Taxes.
426.1-426.5......... Other Deductions.
427-431............. Interest Expense.
Total ExpensesIncome Statement.
Expenses--Balance Sheet:
107................. Construction Work in Progress.
108-115............. Accumulated Provision for Depreciation.
163................. Stores Expenses Undistributed.
174................. Miscellaneous Current & Accrued Assets.
183................. Preliminary Engineering.
186................. Miscellaneous Deferred Debits.
188................. Research & Development.
Other.
Total ExpensesBalance Sheet.
Total expenses.
------------------------------------------------------------------------
12. Form U-13-60 (referenced in Sec. 259.313) is amended by
redesignating Account 920--Departmental Analysis of Salaries as
Schedule XVII, Departmental Analysis of Salaries (currently, Account
920 is separately reported in newly designated Schedule XVI), and by
adding a note at the bottom of the Schedule to read as follows:
FORM U-13-60
* * * * *
Schedule XVII--Departmental Analysis of Salaries
Note.--These amounts include charges to all accounts (i.e.
Income Statement and Balance Sheet accounts). Therefore the total
salaries expense is included on various lines in Schedule XIV if the
income statement is presented on an ``as billed'' basis.
13. Form U-13-60 (referenced in Sec. 259.313) is amended by
redesignating Account 923--Outside Services Employed as Schedule XVIII,
Outside Services Employed (currently, Account 923 is separately
reported in newly designated Schedule XVI), and by adding a new heading
entitled ``Nature of Service'' and a note, to read as follows:
FORM U-13-60
* * * * *
Schedule XVIII--Outside Services Employed
* * * * *
------------------------------------------------------------------------
Relationship ``A''--
From whom Nature of service Assoc. ``NA''-- Amount
purchased Nonassoc.
------------------------------------------------------------------------
Auditing Services:
Total Auditing Services.
Legal Services:
Total Legal Services....
Other Outside Services:
Total Other Services....
Total Outside Services..
------------------------------------------------------------------------
Note.--These amounts include charges to all accounts (i.e. Income
Statement and Balance Sheet accounts). Therefore the total outside
services expense is included on various lines in Schedule XIV if
income statement is presented on an ``as billed'' basis.
14. Form U-13-60 (referenced in Sec. 259.313) is amended by
redesignating Account 926--Employee Pensions and Benefits as Schedule
XIX--Employee Pensions and Benefits, to read as follows (Currently,
Account 926 is separately reported in newly designated Schedule XVI):
* * * * *
Schedule XIX--Employee Pensions and Benefits
* * * * *
15. Form U-13-60 (referenced in Sec. 259.313) is amended by
redesignating Account 930.1--General Advertising Expenses and Account
930.2--Miscellaneous General Expenses as Schedule XX, Other
Administrative & General Expenses, to read as follows (currently,
Account 930.1 and Account 930.2 are separately reported in newly
designated Schedule XVI):
FORM U-13-60
* * * * *
Schedule XX--Other Administrative & General Expenses
Instructions: Provide a detail listing of the amounts included in
Account Range 927-935, ``Other Administrative & General Expenses'',
classifying each amount by account as defined in the account definition
for each of the accounts within the account range.
Account Description Amount
Total
* * * * *
16. Form U-13-60 (referenced in Sec. 259.313) is amended by
redesignating Account 931--Rents as Schedule XXI--Rents (currently,
Account 931 is separately reported in newly designated Schedule XVI)
and by adding a note, to read as follows:
FORM U-13-60
* * * * *
Schedule XXI--Rents
* * * * *
Note.--These amounts include charges to all accounts (i.e.
Income Statement and Balance Sheet accounts). Therefore the total
rent expense is included on various lines in Schedule XIV if the
income statement is presented on an ``as billed'' basis.
* * * * *
17. Account 408--Taxes Other Than Income Taxes of Form U-13-60
(referenced in Sec. 259.313) is removed (currently, Account 408 is
separately reported in newly designated Schedule XVI).
18. Form U-13-60 (referenced in Sec. 259.313) is amended by
redesignating Account 426.1--Donations and Account 426.5--Other
Deductions as Schedule XXII, Other Deductions, to read as follows
(currently, Account 426.1 and Account 426.5 are separately reported in
newly designated Schedule XVI):
FORM U-13-60
* * * * *
Schedule XXII--Other Deductions
INSTRUCTIONS: Provide a listing of the amounts included in Account
Range 426.1-426.5, ``Other Deductions'' by account. Provide a detailed
listing to account 426.5 if the total account balance exceeds $25,000.
Account Description Amount
Total $
Account 426.5 Detail:
Description Amount
Total
19. Form U-13-60 (referenced in Sec. 259.313) is amended by
removing Schedule XVIII, Notes to Statement of Income, and adding new
Schedules XXIII, Miscellaneous Income or Loss, Schedule XXIV, Interest
Expense, and Schedule XXV, Notes to Financial Statements, to read as
follows:
FORM U-13-60
* * * * *
Schedule XXIII--Miscellaneous Income or Loss
Instructions: Provide a detailed listing of the amounts included in
Account 421, ``Miscellaneous Income or Loss''.
Description Amount
Total $
Schedule XXIV--Interest Expense
INSTRUCTIONS: Provide a detail of interest expense by note and
associate company as reported on Schedules XII and XIII. Segregate by
Long-Term Debt (including current maturities) and Short-Term Debt.
------------------------------------------------------------------------
Current
year Prior year
------------------------------------------------------------------------
Interest on Long-Term Debt Debt (Incl. Current
Maturities):
Total....................................... ........... ...........
Interest on Short-Term Debt:
Total....................................... ........... ...........
Total Interest Expense...................... ........... ...........
------------------------------------------------------------------------
Schedule XXV--Notes To Financial Statements
Instructions: The space below is provided for important notes
regarding the balance sheet and income statement, or any account
thereof. Furnish particulars as to any significant items incurred
during the year or existing at the end of the year. Notes relating to
financial statements shown elsewhere in this report may be indicated
here by reference.
By the Commission.
September 13, 1994.
Margaret H. McFarland,
Deputy Secretary.
Note. This attachment to the preamble will not appear in the
Code of Federal Regulations.
Regulatory Flexibility Certification
I, Arthur Levitt, Chairman of the Securities and Exchange
Commission, hereby certify pursuant to 5 U.S.C. 605(b) that proposed
amendment to Form U-13-60 under the Public Utility Holding Company Act
of 1935, as amended [15 U.S.C. 79 et seq.], concerning the annual
report filed by service company subsidiaries of registered holding
companies will not, if promulgated, have a significant impact on a
substantial number of small businesses. The reason for this
certification is that it does not appear that any small businesses
would be affected by the proposed form amendment.
Dated: September 12, 1994.
Arthur Levitt,
Chairman.
[FR Doc. 94-23164 Filed 9-19-94; 8:45 am]
BILLING CODE 8010-01-P
