# Appendix — Securities & Exchange Commission v. New England Electric System > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386411_0257%3A03 ## Record - **Collection:** Supreme Court brief - **Document type:** Appendix - **Published:** January 1, 1966 - **Citation:** 384 U.S. 176 ## Text INDEX Votume III Page Respondents’ Exhibit: No. 3 1297 No. 50 = 1299 No. 51 1301 No. 52 e 1303 No. 53 1305 No. 54 1307 No. 55 1308 No. 56 1309 No. 57 1310 No. 59 1311 No. 60 1313 No. 62 re 1315 No. 63 1316 No. 64 3 1317 No. 65 : 1318 No. 66 a 1337 No. 67 . 1338 No. 68 a 1339 No. 69 1340 No. 70 we 1341 No. 71 1342 No. 73 iy 1343 No. 82 1345 No. 83 i: 1347 No. 84 1349 No. 85 : 1350 No. 86 1351 il No. No. No. No. No. No. No. No. No. No. No. No. No. No. No. No. No. No. No. No. No. Division Exhibit: No. No. No. No. No. No. 104 104A 105 106 107 108 109 110 111 112 113 113A 114 116 117 118 119 1 2 3A 3B 3C 3D Index Page 1367 1369 1371 1372 1373 1377 1379 1393 _ 1395 1397 1397 _ 1405 1408 1411 - 1423 1426 1431 1432 1436 1437 1438 1439 1443 1444 1445 1446 _ 1447 _ 1449 ADDITION TO VOLUME III Original Print Proceedings in the United States Court of Appeals for the Me SI oa ob ecu hace eeenuadesareasamaie 1455 1455 Cee, RENIN, SARs Pe incicis Sansa cacedaoddehaianee 1455 1455 PUES 3 os atid rndawcnan as enad keener camer ron 1476 1471 ‘ Clerk’s certificate (omitted in printing)_._.-_._-.---------- 1477 1472 . Order allowing certiorari...............----------------- 1479 1472 | A cH i i a2 Pe NMOL I2NIAOWS }- NOILINYASNO?D WIONN- LINN 13 ONILVU3IN39 TWNOILIGOY waqWe ce NOILVWLS YOEUYH NIIVS , ios ANWdWOD 21919373 %UIMOd BWIHSHYIE NUZHINOS (6) ANVdINO? ONILHDIT 2¥1L23973 NOLEWVHLYON @) y31839n0 1% ANWGINO? Ne 219492373 IVIHSWYIG NUIHLVON @ \s ANWdWO> iV} waMOd ONY LH9I7 HLNOWAIM G) neianaciaaiee ANVdWO2 21¥19373 NVEUNENS @ i ANWdWOD 219192373 OVOEI T1iv e awnesa ANWdWO? 218919373 ONY SYS NNAT ANWdNWOD DIVL23973 KISS3-MOWWINWIN C8) ANWdNO? W3IMOd PASAW 3H1 (i) ANWdINOD 31413373 LLISNYOVUVN 3H ANWdWO? 219193973 ADININD ©) ANWdWOD 21443373 ALNNOD ¥34LS39290Mm @ ANW dWO? 2442373 34vVLS JLiNvUD (D ANWdINOD Y3MOd ONION MIN (0) N3¥O¥G NMOHS SHSHLO JO S3ILv3ad08d S3eVIGISENS NNvLi3ad SNONSILNOD N3IML3IG BNI] DNIGIAIG xx*x 8 a3INddNS : SLN3W3YINDIY JO NOILYOg IWILNWLSENS —31WS3Y YOs BIWSSTIOHM 41191819373 7/74 Q3IWddNS SLNIW3BYINOIY TIVv —31VS3Y YOs 37VS3ITOHM ALIDINLI373 © * ‘ ANLDBVIG ALIDIGVLDINZ HLIM O3AW3S Wvd 20vHO1S ~~ . Noluwisans W SLIOA 000'69 Y30NN - 3NIT SLIOA 000'S!! - 000°69 - 3NID = SLIOA 000'0€2 - 3NID — LNV1g 21919379 -73NJ ONY OYOAH gy —~ LNW1qg 31819373-O¥0AH W3LSAS DI1¥L9373 OGNVIONZ MIN 30 S3I¥VIGISENS 40 SV3YV 3DIAWIS ONY S3ILW3adOWd DdI¥lD313 W3LSAS D3IYL939713 GNVION3Z MIN RESPONDENTS’ EXHIBIT NO. 3 IAVF\ | a N I Vv W zJuvT ¢ 4,91L29NNOD ‘ome /, wary Tvs 4 envinon ‘waS 3¥OON 2D T3NKNVS ~ tor” LNW1dg DI¥L93973 - 13N4 Pa y jv 7 = Rea ‘| LNIILIINNOI “08 : ee D0 Lf oy Varvas eman Ny J 3WIANDOW > ¥ ane QZ s9ONIVES WAHSWN ‘7 vil ‘ ot Sau. | wanos 47s o--/ £3Suoest110 ‘SPIN 1N3Y354IG AB AIAUIS SVIYV i IIANVSI 7 LoS / esaqiasis MS4avi / / v iP Ve OS o/ ‘Ks RAty BLIHM’ | Ly A 7 i. Y A » 3 : ‘ 1 ae Juv waaTses *S \ ee, a ; M / 4 i j ‘ A ¥2015000m Yaw, , f A Sow Aw . 28 ¥ HS 300n12" os GW sitvs 3h’ \ s.aviom x, x3S9 7001" ~ oo hy S ~ “sae AGNGUILY. a id * C3Ni7u3e SIINVEICY 4 * 1299 RESPONDENTS’ EXHIBIT NO. 50 SUBSIDIARIES OF NEW ENGLAND ELECTRIC SYSTEM AT APRIL 1, 1960 Common Stock Straicut KLectric Companies Ow NERSHIP Attleboro Electric Company 100.00% Granite State Electric Company 100.00 Lynn Electric Company 93.76 Merrimack-Essex Electric Company 100.00 The Mystie Power Company 100.00 The Narragansett Electric Company 100.00 New England Power Company (a) 100.00 Northampton Electrie Lighting Company 100.00 Northern Berkshire Electric Company 100.00 Quincy Electric Company 100.00 Southern Berkshire Power & Electric Company 100.00 Suburban Electric Company 100.00 Weymouth Light and Power Company —_ 100.00 Worcester County Electric Company 100.00 Straicgnt Gas CoMpPaNIEs Central Massachusetts Gas Company 100.00 Lawrence Gas Company 90.43 Lynn Gas Company 93.76 Mystic Valley Gas Company 99.41 North Shore Gas Company 97.52 Northampton Gas Light Company 100.00 Norwood Gas Company 99.38 Wachusett Gas Company 100.00 1300 Service CoMPaNy New England Power Service Company 100.00 (a) New England Power Company owns 30% of the common stock of Yankee Atomic Electric Company. S3JINYdWOD SV9O W31SAS 314919373 GNVIONS MIN ¥ ——— y HI om Le wy >: pe u INVTZTSI PRBS o ony ——- yi ZINIAAONE yO LBM SNL at F nw EXHIBIT NO. 51 Res. 5 DENTS’ XN MOLE RVI um @ewwitvn~n " IYIHSANWYH ao LNOWATA |. 1303 RESPONDENTS’ EXHIBIT NO. 52 28a: F om sumone ane it . “ 7 y -~-)—— | saworereco { ome Se 2 #22. ELECTRIC AND GAS SERVICE AREAS IN MASSACHUSETTS NEW ENGLAND ELECTRIC SYSTEM SUBSIDIARIES NANTUCKET SOUND GMI) scavice AREAS OF GAS COMPANY SUBSIDIARIES [iii] SERVICE AREAS OF RETAIL ELECTRIC COMPANY SUBSIDIARIES COMBINED GAS AND ELECTRIC SERVICE AREAS MARCH, 1960 Scare OF mies ae NO. 53 ih Ta: il BB 7 : B is elf ” i i ny i of 83 — Stes |. F.80 67 f oe ! fa °69O/;F: z Zi: gigs CI tl il al ALT: i hy ial oe lll iii a UN) iy wa OR tre ee esd a RESPONDENTS’ EXHIBIT NO. 54 NEW ENGLAND ELECTRIC SYSTEM i AND NEW ENGLAND POWER SERVICE COMPANY OFFICERS AND DIRECTORS AT APRIL 1, 1960 i OFFICERS NBd ENGLAND ELECTRIC SYSTEM NEW ENGLAND POWER SERVICE COMPANY Chairman of Board Irwin L. Moore * Iewin L. Moore President William Webster ‘William Webster Vice President and Treasurer Harry Hanson ) Harry Hanson Vice President and General Counsel Leeds A. Wheeler ; Leeds A. Wheeler Vice Presidents John I, Ahern John I, Ahern Robert F. Krause R. Leigh FitsGerald Thomas J. Flanagan Chandler W. Jones Robert F. Krause Howard G. Lasselle Claude D. Lawrence Elmer H. Lother Walter P. O'Neil Gustave A. Schoenbucher John E. Teagan Edward F. Ziegler Assistant Vice Presidents Albert Calvert John J. Foley Clifford Hartley Assistant Treasurers Albert E. Westwood Howard E. Needham Fritz A. Ohrn Albert E. Westwood Secretary R. Leigh FitzGerald ; a Clerk and Secretary Richard B. Dunn Assistant Secretaries Joseph X. Corbett John E. Teagan Albert E. Westwood Assistant Clerk . Joseph X. Corbett Comptroller Elmer H. Lother DIRECTORS - FMPLOYEES Carl S. Herrmann John I, Ahern Irwin L. Moore Harry Hanson William Webster Chandler W. Jones Robert F,. Krease Irwin L. Moore William Webster DIRECTORS = OTHER George F. Bennett None Howard W. Cole Charles A. Coolidge Deane C. Davis Paris Fletcher Henry J. McCarthy 7 John H. McMahon CENTRAL MASS. GAS CO. NORTHAMPTON GAS LIGHT CO. WACHUSETT GAS CO. NORWOOD GAS CO. MYSTIC VALLEY GAS CO. LYNN GAS CO. LAWRENCE GAS CO. NORTH SHORE GAS CO. NEW ENGLAND ELECTRIC SYSTEM OFFICERS AND DIRECTORS OF GAS SUBSIDIARIES AT APRIL 1, 1960 President Treasurer Dalbeck Hanson Cutcliffe(1) Dalbeck Hanson Cutcliffe(1) Dalbeck Hanson Cutcliffe(1) Dalbeck Hanson Kenefick(1) Dalbeck Hanson Otten(1) Dalbeck Devitt Dalbeck Hanson Macaulay(1) Dalbeck Hanson Macaulay(1) Vice Presidents Langan Schofield, Jr. Magni tzky Tyler Maguire Rainville,Jr. ‘Kes. Exhibit No. - Cutcliffe E. L. & Directors Employees Other Dalbeck Langan B. Smith* Dalbeck C. NLD Schofield,Jr. J. H, B. Smith* Dalbeck Magnitzky B. Smith Dalbeck Kenefick Rodgers* B. Smith Tyler Dalbeck Devitt Fite,Jr. Kennedy Murray Culver* Dalbeck Macaulay Maguire Dalbeck F. E. ’ Macaulay R. XK. Macauley C. 6! Rainville,Jr. $¢ et « “eS, Exhibit, —~— NEW ENGLAND ELECTRIC: SYSTEM OFFICERS AND DIRECTORS OF ELFCTRIC SUBSIDIARIES AT APRIL 1, 1960 Directors President 4 Employees of Treasurer Vice Presidents tem Subsidiaries Other Herrmann (Chrm.) Barstow Jones Allen Jones R. BE. Farwell Moore Brandt Joslin Barstow Moore P, H. Page Hanson Coe Nelson Brandt Nelson H, C, Rice Crabtree Rouner Crabtree Pope* Herrmann . Webster Hanson Secord Leaoh 2 Moore C. R. Brownell W. A. Loughlin Cutcliffe (1) Costello (2) Van Rye (2 Secord -C. Bullock M. A. Moore Smith Cc. T. Daley P. R. O'Connell R. N. Greenwood A. W. Rice M. C. Jaquith Smith Butler Butler Fish E. L. Arnold J. H. Finn Hanson Fish Cutcliffe Smith C. N. DeRose Cutcliffe (1) Pierce Ahern Butler New lle E. H. Arnold Hanson Butler Cutcliffe O'Connor H. B. Clark Cuteliffe (1) Smith Pierce H. J. Guild F Meehans Smith W. A. O'Hearn Brith Butler Ahern Nichols Hanson Michols Butler Omi th Cuteliffe (1) Cuteliffe Parsons Flynt Donsila Perry* J. W. Kapples Hanson Flynt Walshe We Js Martin Kenefick (1) Parsons Perry (Carn. ) Flynt Coleman® Parsons G. L. Barnes Parsons Flynt Perry* A. Vinal Hanson Leary* Walshe M. BE. Young Kenefick (1) Ayer Pulsifer Adans Moore 0. T. Bergstrom Hanson ayer Otten I. 8. Hall Otten (1) Chine Pulsifer R. C. Tenney Ayer FiteGerald Ayer Kelleys T. D. Chatfield T. W. Rogers Devitt Coleman® M. P. 2 ° C. F. Smith, Jr. Cooke He L. e Bower Casey Hunt Bower Leddy H. W. Bourgeois W. J. MaciInnes Hanson Hickey Leddy Casey Nickerson# fF. £. Brophy R. K. Patch Macaulay (i) Holcomb Pike, Jr. Hickey Pike, Jr. J. P. Donahue C. C. Pope Holcomb I. S. Hall C. M. Runels R. W. Knight R, C. Tenney W. W. Kurth ELECTRIC 00., THE Twohey Cabot Cabot T. F. Black, Jre E. A. Kingman Ringler Clarke Krause Zz. R. Bliss N. D. MacLeod Kelley Twohey W. T. Brightman, Jr. J. W. McCormick Webster M, G. Chace, Jr. F. A. Mirando R. J. Goodnow 0 ELECTRIC CO, Twohey Fisher Allen Ringler V. R. Glencross L. B. Smith Hanson Canning*® Twohey F, V. Murphy, Jr. F. L. Wetherell Ringler (1) Fisher OR CO., THE Cabot Twohey Cabot Lloyd J. H. Bindloss J. Rossie Ringler Clarke Twohey A. H. Gildersleeve Lasarek STATE ELECTRIC CO, Bailey FitsGerald Bailey H. C. Farerton Couser Couser F. F. Hough FitzGcrald L. DB. Peever M. D. Williams ind Treasury Ropresontative * Rotired agent Treasurer a t Exhibit No. 57 Rés. *Tenuey AQTI FIN OFLINd @ , Apoow f-T-g°g 0% Squodey TeoTqstzeis Tenuuy ‘sqazodey Tenuuy ‘eyed Jo eo.no0s STqeTyeay JON - VN (*9eTH “1eN JO suotzezedo se3 ZutTputToxe) 199 ses‘ T0* LL tzg 6€6 “2 Lez 6561 soz weqshg OF1709TH pueTzuq MeN (T) 00007 zst*2t zgt T67* TL Olt "09 eoTateg OFTGnY euoZT.y OzT 06S*2 6ST°EZ% 6Tt ol9* TL 66 °o9 QUITI STOUTITI Tez}UeD oc9€ LOLS€ Lo9* TY €62 SqL’ Lt Stz °o9 OTIZOeTA F SBD OZeTT ues oostlz 296 *2€ 6LT 96LSLT 16 "09 WITT pue samog sesuey ooTSt 007*9T 069% LL TS" 9£9°6T 66 *diog sep) pue STIPOSTY O7&9S YAOA MON 00008 690‘SST ng $96 °6T QSz *dzoouy ‘seT3FItin uyos STPPH YN ose *T LSS‘zz 60T LLO‘ Tz 92T *0) OTAPOSTY pue seg STOUTTTI-eMoT oT ‘ot tHE S TET LL9 0g9* Tz SST °09 Jemog sezeyS U1SyzION ool €79°8€ 9gT 999° 22 NST ‘op OFa}OeTY pue sep STL TAs Toy] 069 €565T Z6L‘ LE L6T LyTS€z OST *o9 OFIPOSTY pue sep 16jSSysoy OS ses*t neg’ ETT stg 9le°€z cura (Tt) weqség OTT70eTE pueTeug AEN T7119 zso*Tt 569° Sz gt Qse *€z TT *oossy OTT}OSTR pue sep pueTsuy AeN YN 000' ST TL9*L9 ere nL9S€z 9QT fueduog seMog sTOUTTTI o¢2*Tt SOE £06 ons See *éz Tre *o9 BuTWSTI pueTs] Zuo0T ~ THOS9 gsSo*Tts 092 €5S°6z ggt Aueduog 2UZTI pue semog uozfeq sul TTLST SS2°z Lt9*€0z 9T0fT €26 ‘LE Tez fueduoy ofrpOeTYZ eVTudtepet td 000 ZT 009°€S Sz 91S‘ gE oOl2 "op eoTAseS OTTQN_ eueTpu. UxreyzION YN 000°9T get'ts TLE 696 * 1 062 OperOTOD JO °OD SoTAIES OTT So €9z‘2 TEO*EOT Ses FAS Se | Tee op OFIZOSTY pue sep S10uT} Teg TS€ 96952 962°SL 604 Sns*2s 662 *o9 OTIPOSTY pue sep TPEUUTOUTO SUL ool ‘€ 009£2z €19*902 lgo‘T 0S2°ls ose uoT}e70d.109 JemMog YMeYON erese TN 619°S €99°92 €9T*OST €ng 69€‘9L Tet fueduog zem0g szoumsuog 007 009 9st*9st 66152 gge ‘06 gte‘T YJOL MON JO “OD UOSTPY peqePTTOsuo 000£2 oot N€o' bez zlest 000’ STL ZIst *0p SeN PUB OTIPOSTY. eoTaseg OFTANd 000116 QSL°tse$ =—ssaQTIQ* TT NEE‘ SOz$ 99S*T fueduog, ofr}OeTY pue sep oTspoed sv) OIuLOa TA Spuesnoy], spuesnouy] Spuesnoy], #§§ spuesnou] enusaey S.19W0YSND enueAey s.1SU0pSND SST TH sienbs Buyzesedg = JO: AOUITWN Zuyzesedg =6._- Jo: AOquTN| peares Bezy eyeu pxoddy O1aLoaTa $vo SENNAATU ONILVHAdO SVD UISHL HLIM SONVAHOOOV NI GaONVEEV T WVaA GHL BOA SWAISAS GNV SAILTILLA OIMLOa Ia ONY SVD NOLLYNIGNOO HOUVT Se wd VLVd SZALLVUVdWOd (00g **T) oot®z (000*Ts ) 005 “TZ 005 "99 007" 02 00g y (005 *98) (oot*€0z) (Oot * 2gT) (006*€0T) (008 ‘0S ) at WV QS6T “TE sequeceq pepue syzuOW saTany Geeutseng sep Jo eouereseg fg pesned STEN 49 pounp seyuedmon sep syyesnyoesseN 4UFTE Jo y @moouy JO squeMe}E}S 07 SUSU; SNf py @m3tzZ per seqeotpul ( Spuspqatd pue 4se194U] si0jaq euosU] sso xe] ewooul Terepez UINQSY PEZEPFTOSUOD SIAN UF uoTyedToTz7eg OF SNP UOTZOr peY Stseg uInzey ezerede¢ uO Xe] ewooul [esepe Xe] swooul Terepeg erOzeq ewooU] sscr ewoouy ZutzeredoUC 4 suoTyONped enveasy ZuTzeredO eaoqe Jo TezO] @wooul Tesepeg Uey, 19430 - Sexe] WOT peTSe1Gseq sesuedxs ButTze18d) suoTzoONped enusasy ZuTzeW108cK senusaey Put zesedo) TezO] waud0 em3tz per seqeotpar ( ) Spuepyatd pure yser9e7Ul e10zeq sMOOU] Ss01p xe] empoul Te1epeg UINZOY PExePTTOSUOD SEIN UT woTyedPOTzTed 0 eNp UOTIONPeY ee ee Se Kel sscoul [wsepeg Xe] ewoouy Terepeg e10yeq ewooul ss0.1H (0st) (oor2) (cont) © ouen) «= @ooyz) (009' gt) ooo" Wet = ~ - = = = = = = (000%@z) __(O0L"T9) = (o02"eE) (@r'2) enueacy, Sutzezedo Te 000 = - ~ = : - . : - (0o"@2) (G01"T9) = (oo at) ——(oor"2) — - - - - - - 7 7 7 ~ - - - ~ ~ M3xzeuq Wt. 0eTy JO $ $ $ $ $ * t ¢ ¢ $ $ $ ¢ 3 $ Te “Tisdog 0 Tedmop«Tedon 0 ied 0 ied «0 og “Aired oq" Tiedeo, 6 iredwop Sedo. «ido «0 Tiredimop “““Tiwisoy 4 Tiredaoy 0 Quemaedeg fueaao Temeg = EOSTOIROeTY OP OSTY amg oF} 08TH wang O0CTZ TFOSTYOTOST, «OF. OSTY Buy 3uFTT OFTR29TE F2399TR oF eTR pre 3437] @ temog foump =6erTgseg = pur Soy ag 20-9} ose Petey om aky MRIS ZOgSTIVy mop 0 weq-mans OTR0eTZ xesey ~ Suedmoy weeymog Wynoaieg = etysteg arog eyTuED wy se0r0g bi i il | nee SD tea et I SO es on a fi He fal | Hill | AE Hi - Hill- +} () Indicates red figure ————— 2l6t $62 Ame 09é6t *TE *320 zl6t *l2 4tme QL6T *9T °AON Q@l6T *T *3des 096t STE °30 TL6T *€T *9eC o96t “TE °20 ZLEt *L *34deg O96T “TE °200 ZL6T “Ne Prey €l6t *TE *20 096t “IE *3?0 2lé6t *9T Thidy 096 *TE °200 TL6T *€% *aon O96T “TE °20 2l6T £2 PaeR TL6T ‘S$ *9eq O96T *TE °30 TLET *S *9eq eyeg woTPeUTMIe] qoerqu0g *UOTSS TMC) IeMOy TeIepez JO Jepio pue Zuyreey 04 yefqns st *OL6gT-p yeqoog ‘Aredmoy uoTssTmsuetl sep umbuc#Ty Jo uoTyeOT[ddy soysteg JOU TA 000*tz Tto*t Te9*ET zzefll "900" He ——6lUS:!l( - - TE9*ET 2z0°9L ares oot *T zon 00g‘ z TLO‘T ” oot *t 91S ooc *z €9y 00g*T Lget*t 009 ‘OT 000° 1z zto*9 006 *9€ 699°T | 962*L 961°2 _ oot*g 929°T 96S 006*Z eoTareg GoTAXeg 4 SGOTAIeg 86 SOTAISS | eee bE BE BES EBBE BE ES BBE 88 TVIOL CNVED TezOL °09 S® 7 7esnNtA *0D S¥p poo *op *4] sep woydurey NEW ENGLAND ELECTRIC SYSTEM GAS SUBSIDIARIES Company and Location Central Mass. Gas Co. Southbridge, Mass. Lawrence Gas Co. Lawrence, Mass. Lawrence, Masse Lynn Gas Co. Lynn, Mass. Mystic Valley Gas Co. Malden, Mass. Malden, Mass. Reading, Mass. North Shore Gas Co. Salem, Mass. Salem, Mass. Danvers, Mass. Gloucester, Mass. Northampton Gas Light Co. Northampton, Mass. Norwood Gas Co. Norwood, Mass. Wachusett Gas Co. Leominster, Mass. GRAND TOTAL GAS PRODUCTION PLANTS Type L.P. - Air gas Oil gas LeP. = Air gas Oil gas Oil gas LeP. - Air gas L.P. - Air gas Oil gas L.P. > Air gas L.P. baad Air gas L.P. - Air gas Oil gas LeP. baad Air gas L.P. - Air gas Oil gas L.P. - Air gas Daily Plant Capacity-MCF 906 *6SS *€T Ses*9g 6zS*T2 ~=—s_-980*S9 Eze SELHET got *t16S St0* 61g 6 2T TeqOL 919 *692 602°€ 602*€ Lo9* 992 eee ®t Lz‘ 292 POOMION L62°g6" T6g*2 169 ‘2 907°S6" 096‘ LE 927° LS wozdureyztON | TLO*9TY 90% ‘2 90%‘ 2 s09*€Th QST*gT Lyy*S6€ qqesnyoen | $62°06L €2L*t €2L*t 215 ‘*9gl 756 *02 029° 192 °sstq Tetquep gEL‘TOTS2 gen* Tt ogg ‘€ gss*l Oo€ 0ST 2 l90‘ 2zT €€z*gz0*2 SOUSIMET © 9S £9 £2 296 °SE 296 °SE 209% OTH *2 9£9°96 99L ETE SZ wus] 6TT ‘NLT getfot 066% —-9€25S C€6°SELST 91 *99 191°699°T exous UION | g90*TE2*S OLL ‘QT T9ESS 607° ET 962° zt2°S 9€9* 122 zon *tg6 *Y AetTe, IT3SAW © TVLOL TeqOL IW dt 8% Tt TesoL SotAIeS Feag = Teirsusy “gas Gaondoud AK GasvHOUNd JW 6U - Gaondoud AGNV GASVHOUNd SVD SHINVEIISHOS SVD age 1319 RESPONDENTS’ EXHIBIT NO. 65 DESCRIPTION OF PRODUCTION AND DISTRIBUTION FACILITIES OF NEES SYSTEM GAS COMPANIES CENTRAL Massacuusetrs Gas Company The Central Massachusetts Gas Company franchise area and gas properties are divided into two operating districts, each supplied separately from the Tennessee Gas Trans- mission Company’s system and otherwise isolated from each other. The main system, the Southbridge-Webster division, re- ceives natural gas in Southbridge at Sandersdale at a point on the high pressure line connecting Southbridge with Webster. At this point, in addition to the take station, there is located a high pressure L.P. Air gas plant with a capacity of 100 MCF per hour or 2400 MCF per day of 1000 Btu equivalent gas at 75 psig, and 50,000 gallons of propane storage. During peak-shaving periods this plant normally produces L.P. Air gas which is mixed with the incoming natural gas and distributed directly through a high pressure line west to Southbridge and east to Webster for local distribution from those centers. Normal peak- shaving operation is limited to a 50% mixture of L.P. Air gas with natural gas by the interchangeability characteric- tics of the two gases. Full propane storage is equivalent to 4600 MCF of 1000 Btu equivalent gas. Under emergency conditions or complete failure of the natural gas supply, the L.P. Air gas plant plus the holders at Southbridge and Webster, could carry the entire load on all but four days of the winter of 1959-1960, and on those days, inter- ruption of industrial customers and reducing temperature 1320 settings of heating customers’ thermostats would make it possible to carry the entire remaining load on all days. There are no production facilities in Spencer and no connections between the two divisions. Accordingly, the Spencer Division area is entirely dependent on pipeline gas. In the Webster-Southbridge division, the incoming natural gas flows in two directions to the holder station at Union Street, Webster, and the holder station at Wardwell Court, Southbridge. The high pressure feeder main connecting the two holder stations is composed of 4-inch, 6-inch and 8-inch diameter pipe. The gas which flows into Southbridge is reduced in pressure at the holder station and routed to the low pressure syste. There is one high pressure feeder main. The gas which flows toward Webster supplies a high pressure distribution area in Dudley and the holder station in Webster. At the Webster holder station, the gas is reduced in pressure and routed into the holder from which it flows through a station governor into the low pressure network in Webster and part of Dudley. The low pressure systems of the Webster-Southbridge division operate at 6.0 inches water column. In the Spencer division, the incoming natural gas flows from the receiving station through an 8 inch diameter high pressure feeder main which connects to the high pressure feeder mains supplying the holder station at Spencer and the high pressure distribution systems in the communities of Brookfield, East Brookfield, North Brookfield, West Brookfield, Leicester, Spencer and Warren. At the holder station in Spencer, the gas is reduced in pressure and routed to the intermediate pressure distribution network in Spencer. All of the customers in the Spencer division are served through house service pressure regulators from high or intermediate pressure mains. The Central Massachusetts Gas Company has 13.6 miles of cast iron mains, 34.0 miles of welded steel mains and b- : i t f ; € : t 1321 93.7 miles of wrought iron or steel mains with screwed or mechanical joint connections. The total of 141.3 miles of mains include 70.6 miles of principal high pressure feeder mains which range in diameter from 34 to 8 inches. 46 per cent of the mains are 4 inch or larger in diameter. Lawrence Gas Company The production facilities of the Lawrence Gas Company are located off Marston Street, Lawrence, consisting of a high Btu oil gas plant, and a low pressure L.P. Air gas plant. The oil gas plant contains one production unit, two light oil generators, one 9 feet in diameter, one 8 feet in diameter with an 8 foot diameter superheater. This ma- chine is capable of producing 110 MCFH of 1000 Btu equivalent gas or 2200 MCF per day. Fuel storage for oil gas production consists of 180,000 gallons, equivalent to about 12,000 MCF of 1000 Btu equivalent gas. The low pressure L.P. Air gas plant is a jet plant with a maximum production capacity of 200 MCFH of equivalent 1000 Btu gas or 4800 MCF per day. Fuel storage for L.P. Air gas production consists of 75,000 gallons of propane equivalent to 6900 MCF of 1000 Btu equivalent gas. Oil gas and L.P. Air gas, as required, are produced and stored in a low pressure storage holder. From there they are pumped to higher pressures for mixing with natural gas for sendout to the medium pressure distribution system. Mixed gas also flows into the low pressure holders through a pressure regulator for plant distribution to the local area of Lawrence. The production plants are used primarily for peak-shaving and also they provide backup for the natural gas supply. When used for peak-shaving, oil gas cannot be used for more than 40% of the sendout, and L.P. Air gas is not used for more than 50%. When both oil gas and L.P. Air gas are used, the mixture is limited to 60% of the sendout. 1322 Tennessee Gas Transmission Company delivers gas to the Lawrence Gas Company at a take point in Methuen, Massachusetts. From this point, part of the gas is delivered westerly to a pressure regulator station at Jackson and East Streets, Methuen, supplying the low pressure dis- tribution system. The bulk of the gas purchased flows from Oak Street to the Marston Street plant in Lawrence, the main distribution center of the Company. From the main distribution center, low pressure and feeder mains extend into Lawrence, Methuen, Andover and North Andover. Customers are served from low pressure mails operating at 6-inch water pressure and intermediate pressure mains operating at from 20-inch water pressure to 2 psig. About 2.5% of the customers are served through individual house pressure regulators. The Lawrence distribution system con- sists of approximately 253.5 miles of cast iron mains, 22.5 miles of welded steel mains, and 25.7 miles of wrought iron and steel mains with threaded or mechanical joints. In- cluded in this mileage are the principal high pressure feeder mains which total about 14.5 miles ranging from 6 inches to 12 inches in diameter. Approximately 86% of the mains in the Lawrence distribution system are 4 inches or larger in diameter. Lynn Gas CoMPany The production plant of the Lynn Gas Company is located on the Lynnway in Lynn, and consists of three production units; one 12’6” and two 10’6” inverted **U”’ type high Btu oil gas sets. Only two of these sets can be operated simul- taneously, the larger set with one of the smaller sets, due to the fact that the two smaller sets have a common air blower. This plant can produce a maximum of 390 MCFH of 1000 Btu equivalent gas or 7800 MCF per day. Fuel storage for oil gas production consists of 4,555,000 gallons of oil storage, which is equivalent to 304,000 MCF of 1000 1323 Btu equivalent gas. This is adequate for about 39 days of capacity production. Lynn has excess oil storage capacity which could be beneficially used by the North Shore Gas Company and/or Mystic Valley Gas Company. High Btu oil gas as produced is put into the 2000 MCF and 5000 MCF storage holders where it is mixed with natural gas in the holders. Peak-shaving is accomplished by delivery of this mixed gas directly to the local low pres- sure system or by supplying this mixed gas from these storage holders through gas compressors to the high pres- sure feeder main system. Lynn Gas Company has no boiler plant of its own and purchases all of its steam requirements from the adjacent plant of the Lynn Electric Company. Lynn purchases all of its natural gas requirements from the Tennessee Gas Transmission Company through the re- ceiving station at Homesite Street, Lynn, Massachusetts. From this station the natural gas purchased is delivered to the distribution and control center located at the gas plant on the Lynnway through a primary 12 inch high pressure feeder main. At the Lynnway distribution center the incom- ing natural gas is delivered through a pressure regulator to the storage holders and thence through another pressure regulator to the local low pressure distribution center. Also at this distribution center, the incoming natural gas is routed to high pressure feeder mains which extend into Lynn, Swampscott, Marblehead, Saugus, Lynnfield and Nahant. Customers are served generally from a low pressure distribution system in which the operating pressure is 6.0 inches water. The high pressure feeder main system oper- ating at pressures of 20 to 45 psig supplies and reinforces the pressure in the low pressure system through pressure regulators connecting the two systems at necessary loca- tions. About 7% of the customers are supplied directly 1324 from the high pressure feeder system through house service pressure regulators. The Lynn distribution system consists of 245 miles of cast iron main, 81 miles of welded steel main, and 42 miles of wrought iron or steel main with threaded or mechanical joints all ranging in diameter from 1 inch to 24 inches. Included in this mileage are the principal high pressure feeder mains which total about 31%4 miles and which range in diameter from 4 inches to 12 inches. Approximately 82% of the mains in Lynn’s distribution system are 4 inch or larger in diameter. Mystic VaLLey Gas Company The Mystic Valley Gas Company has three gas plants: a high Btu oil gas plant and a low pressure L.P. Air gas plant at Charles Street, Malden, and a high pressure L.P. Air gas plant at John Street, Reading. The Malden oil gas plant contains three production units, two 111% foot sets and one 11 foot set. These are all twin generator light gas oil sets. This plant can produce a maximum of 590 MCFH of 1000 Btu equivalent gas or 11,800 MCF per day. Fael storage for oil gas production consists of 900,000 gallons of oil storage, which is equivalent to 60,000 MCF of 1000 Btu equivalent gas. The low pressure L.P. Air gas plant at Malden is a jet plant with a maximum production capacity of 420 MCFH of 1000 Btu equivalent gas or a daily capacity of 10,080 MCF. Fuel storage for L.P. Air production consists of 225,000 gallons of propane which is equivalent to 20,700 MCF of 1000 Btu equivalent gas. Gas produced by both the oil gas plant and the L.P. Air gas plant at Malden is put into a 1000 MCF storage holder at the plant. From there it is compressed and delivered to the plant control center where it is mixed for peak-shaving purposes with high pressure natural gas from the Arling- ton receiving station before routing into the high pressure 1325 distribution feeder main system and through a pressure regulator into the low pressure distribution network. The high pressure L.P. Air gas plant at John Street, Reading, can produce a maximum of 420 MCFH of 1000 Btu equivalent gas at 50 psig or 10,080 MCF per day. Fuel storage for L.P. Air production consists of 150,000 gallons of propane which is equivalent to 13,800 MCF of 1000 Btu equivalent gas. This gas, as produced, can be mixed for peak-shaving purposes with high pressure natural gas from the Reading receiving station. The mixed gas is then de- liv ved to the high pressure feeder main system; north to Reading and south to the main distribution system of the Mystie Valley Gas Company. Under normal operating conditions, mixed produced gas and natural gas cannot be delivered to the Arlington area and can only be delivered té a very small part of the Revere area. Because of this situation, peak-shaving in the Mystic Valley Gas Company is limited to about 53% of its distribution area and load. Mystie Valley purchases gas from Tennessee Gas Trans- mission Company at four receiving stations. These stations are located on the periphery of the distribution system at Washington Street, Arlington, at Wood Street, Lexington, at Lowell Street, Reading, and at Broadway, Malden. There are three major distribution centers or stations and two minor stations in the Mystie Valley Gas Company. The major centers are at Grove Street, Arlington, Railroad Avenue, Revere, and Charles Street, Malden. The two minor stations are at John Street, Reading, and Wood Street ’ Lexington. Normally gas flows from the Arlington station through a 16 inch high pressure primary feeder to a regu- lating and holder station at Arlington, at which point part of the gas is routed through secondary high pressure feeder mains to the communities of Arlington, Belmont, Burling- ton, Lexington, Winchester and Woburn. The remainder 1326 of the gas from the Arlington station continues to flow through the 16 inch high pressure primary feeder until it reaches the Malden gas plant at which point the gas is routed through secondary high pressure feeder mains toward the communities of Medford, Malden, Everett, Revere, Melrose, Stoneham, Wakefield and Reading. At the Malden gas plant, peak-shaving is performed by adding propane-air and/or oil gas to the natural gas. During the summer months, gas flows from the Lexington station into the distribution system owned by the Air Force at Hanscorn Air Base in Bedford. During the winter months the gas consumption at the air base is substantially reduced and, in order to maintain a favorable purchased gas load factor at each take point, the Mystic Valley Gas Company routes through an 8 inch high pressure primary feeder and several secondary high pressure feeders, a quantity of gas into the area normally supplied from the Arlington receiving station. The control of volume flow during the winter months from the Lexington station is accomplished by means of a remote control device which is monitored by personnel at the Malden control center. Gas which is received at the Reading station travels through a 10 inch high pressure primary feeder to the L.P. Air gas plant and regulating station at Reading. From this point the gas is routed, through secondary high pres- sure feeder mains, toward the communities of Reading, Stoneham, Melrose, ¥gakefield, Malden and Revere. When required for peak-shaving, propane air gas is added to the natural gas at the Reading plant. The receiving station located in Malden adjacent to the Revere boundary, delivers gas through a 12-inch primary high pressure feeder main and several secondary high pres- sure feeder mains. The gas flows into the communities of Revere and Winthrop partly by way of regulators con- 1327 nected to the 12-inch primary feeder and partly by way of regulators located at the holder station at Revere. Monitoring of gas pressure and flow conditions is per- formed by the telemetering of various information from selected locations. For example, the height of outlying holders in Arlington, Revere and Winchester can be deter- mined by observation of telemetered information in the contro] center. The flow into the holders ean be regulated by personne] at the Malden contro] center via remote con- trol facilities. The Mystic Valley Gas Company has approximately 79,300 customer services, some of which supply more than one customer through separate meters. There are approxi- mately 5100 house service regulators in use to contro] the pressure delivered to appliances wherever the distribution main pressure is greater than normal low pressure. The pressure in the high pressure mains ranges from about 2 psig to about 90 psig depending on the time of year, the particular main considered and customer requirements. The high pressure mains range in diameter from %4 inch to 20 inches. The low pressure system is supplied from holders and/or regulator stations which receive their sup- ply from high pressure feeder mains. The low pressure system operates at an average pressure of approximately 6 inches water column. Low pressure mains range in diameter from 1 inch te 30 inches. In the Mystie Valley area there are approximately 710 miles of cast iron mains, . 106 miles of welded steel mains and 100 miles of wrought iron or steel mains with the latter having other than welded joint construction. NortH Snore Gas Company The production facilities of the North Shore Gas Com- pany are a high Btu oil gas and a low pressure L.P. Air gas plant on Pierce Avenue, Salem, a high pressure L.P. 1328 Air gas plant in Danvers and an L.P. Air gas plant on Emerson Avenue, Gloucester. The Pierce Avenue plant in Salem contains two high Btu oil gas machines, 11 feet and 9 feet in diameter and can produce a maximum of 283 MCFH or 5650 MCF per day of 1000 Btu equivalent gas. Oil storage for high Btu oil gas production amounts to 230,000 gallons equivalent to 15,320 MCF of 1000 Btu equivalent gas or 2.71 days at the maximum production rate. Also located at the Pierce Avenue plant in Salem is a low pressure jet mixing type L.P. Air gas plant with 50,000 gallons of propane storage. This plant can produce a maximum of 216 MCF per hour of 1000 Btu equivalent gas and on the same basis can produce 5185 MCF of 1000 Btu equivalent gas per day. The propane storage is equivalent to 4600 MCF of 1000 Btu equivalent gas. At the Pierce Avenue plant high Btu oil gas and/or L.P. Air gas is produced and delivered directly into the 500 MCF storage holder. Compressors take the gas from this storage holder and deliver it to a high pressure mixing house where it is mixed with natural gas for high pressure distribution. The mixed gas then goes out to the high pressure system or through a pressure regulator to the 2000 MCF holder for low pressure distribution. Mixed gas from the 2000 MCF holder is also delivered to the River Street holder station, Beverly, for low pressure distribution in the Beverly area. The high pressure L.P. Air gas plant at Danvers can produce a maximum volume of 360 MCF per hour of 1000 Btu equivalent gas at 75 psig, and on the same basis can produce 8640 MCF of gas per day. The propane storage is equivalent to 6900 MCF of 1000 Btu equivalent gas. Under normal peak-shaving operation, L.P. Air gas is produced at this plant and mixed directly with natural gas being delivered by the Tennessee Gas Transmission Com- 1329 pany, and sent out at high pressure on the main take lines delivering gas to the Beverly side of the distribution system and directly south to Peabody and the Salem distribution center at the Salem plant at Pierce Avenue. Under emergency operation or the failure of gas supply from the pipeline, the Pierce Avenue plant would produce L.P. Air gas and oil gas and the Danvers L.P. Air gas plant would produce L.P. Air gas at high pressure. In this way, the entire load of this Division of the North Shore Gas Company could be produced, Under normal peak- shaving operations, the high Btu oil gas plant at Pier Avenue is used. While 40% is considered to be a critics! limit of produced gas in the sendout gas in this territory, there are five industrial plants manufacturing lamp bulbs or other similar products which have a very critica] toler- ance to mixed gas. Since high Btu oil gas has the least effect on industrial] applications, it is given preference in peak-shaving. In the Gloucester division of the North Shore Gas Com- pany, Tennessee Gas Transmission Company delivers gas at a receiving station at Essex Avenue. From there it is delivered by a high pressure line to the main part of Hloucester across the Annisquam River. On the west side of the River there are only a few domestic and commercial customers and one large industrial. At the Emerson Avenue distribution center is a Hortonsphere high pressure gas holder with an effective capacity of 199 MCF. Also located here is a high pressure L.P. Air gas plant with a maximum capacity of 137 MCF per hour of 1000 Btu equivalent gas, or 3288 MCF of 1000 Btu equivalent gas per day. The L.P. storage at this plant consists of 90,000 gallons of propane equivalent to 4600 MCF of 1000 Btu equivalent gas. Under emergency operation such as complete failure of pipeline gas the Emerson Avenue L.P. Air gas plant and the Hortonsphere could supply the entire requirements of 1330 the Gloucester division. Under normal peak-shaving oper- ation, the loads west of the Annisquam River cannot be supplied with manufactured gas. Natural gas from the pipeline and L.P. Air gas are mixed and distributed to the low pressure system through pressure regulators and to the intermediate pressure system for local distribution in Gloucester east of the River. The North Shore Gas Company purchases all of its natural gas requirements from the Tennessee Gas Trans- mission Company through two receiving stations; one in the Gloucester division at Essex Avenue, Gloucester, and one in the Salem-Beverly division at Broad Street, Dan- vers. These two divisions of the North Shore Gas Company have completely separate distribution systems, with no interconnecting mains between divisions. In the Gloucester division, the incoming natural gas is transported from the receiving station to the L.P. Air gas plant at Emerson Avenue, through an 8 inch diameter primary high pressure feeder main. The incoming gas pressure is reduced at this point and routed through high pressure feeder mains which extend into the communities of Gloucester and Rockport. Most of the customers are served from a low pressure distribution system in which the operating pressure is 6.0 inches water column. The high and intermediate pressure feeder main system operating at pressures of from 1 psig to 50 psig reinforces the pressure in the low pressure system through pressure regulators connecting the two systems at necessary locations. About 15 per cent of the customers are supplied from the intermediate and high pressure system through house service pressure regulators. In the Salem-Beverly division, the incoming gas is trans- ported from the receiving station and L.P. Air gas plant at Broad Street, Danvers, to the Salem gas plant at Pierce Avenue, Salem, through a 12-inch diameter primary high Aida 1331 pressure feeder main; and to a connection in Danvers to the high pressure peripheral feeder system through a 12-inch diameter primary high pressure feeder main. At the Pierce Avenue plant, the gas is reduced in pressure and routed to the high pressure peripheral feeder to the holders in Salem and Beverly and to the low pressure systems in Salem, Peabody and Beverly. The high pressure peripheral feeder forms a loop which extends from the holder station located at River Street, Beverly, through parts of Beverly, Danvers, Peabody and Salem, to the gas plant at Pierce Avenue, Salem. There are high pressure feeder branches from the loop main and connections where the low pressure system is reinforced through pressure regulators. About 4 per cent of the ecus- tomers in the Salem-Peabody division are served through house service regulators from high pressure distribution mains. The remainder of the customers are supplied from the low pressure systems. The North Shore Gas Company has approximately 347 miles of mains ranging from 114 inches to 16 inches in diameter, consisting of 247 miles of cast iron mains, 62 miles of welded steel mains and 38 miles of wrought iron or stee] mains with screwed or mechanical joint connee- tions. Included in this total mileage are the principal high pressure feeders which are about 58 miles in total length and which range from 2 inches to 12 inches in diameter. Approximately 85 per cent of the mains in the North Shore Gas Company’s distribution system are 4 inches or larger in diameter. Nortuampton Gas Ligut Company This company supplies gas to the City of Northamptof and the Town of Easthampton. Natural gas is purchased from the Tennessee Gas Transmission Company at the Kar! Street delivery point from which gas for Northampton AOE GE LOOT NAICS PRENSA AEOS IED i a ld 1332 flows to the Crafts Avenue production plant to the West Street holder station, the distribution center for low pres- sure delivery. At the Crafts Avenue plant there is an oil gas plant containing one high Btu oil gas machine capable of producing 55 MCF per hour or 1100 MCF per day. Oil gas produced at the Crafts Avenue plant is mixed with natural gas and distributed by compressors to the inter- mediate pressure system extending north to Florence and Leeds and also is sent to the low pressure holder at West Street for low pressure distribution. Gas for Easthampton is transmitted at high pressure from the Earl Street gate station and cannot be peak shaved. Approximately 60% of the total Northampton Gas Light Company load can be peak shaved. Northampton plans to install an L.P. Air gas plant at the Karl Street delivery point this year. Following that the oil gas plant at Crafts Avenue will be abandoned. This will make it possible to peak shave the entire Northampton system. Gas for Easthampton flows from the Karl Street delivery point through a high pressure feeder main which is partly 8 inches and partly 4 inches in diameter to the Easthampton distribution system and to the Easthampton holder station at Liberty and Mechanie Streets. A district regulator be- tween the feeder main and the low pressure system pro- vides pressure reinforcement. At the holder station in Easthampton the gas is reduced in pressure and routed to the holder, the low pressure network and to an intermediate pressure feeder main which in turn supplies a district regu- lator for reinforcing the pressure in part of the low pres- sure system. The low pressure systems in Easthampton and Northamp- ton operate at a pressure of 6.0 inches water column. Approximately 5 per cent of the customers of the North- ampton Gas Light Company are served from high or inter- 1333 mediate pressure mains through house service pressure regulators. The Northampton Gas Light Company has 69.7 miles of cast iron mains, 16.9 miles of welded steel mains and 24.7 miles of wrought iron or steel mains with screwed or mechanical joint connections. The total of 111.3 miles of ma‘us includes 23.4 miles of principal high pressure mains which range in diameter from 2 inches to 8 inches. 60.2 per cent of the total mains are 4 inches in diameter or larger. Norwoov Gas Company The Norwood Gas Company purchases gas from the Algonquin Gas Transmission Company, delivering it to the Dean Street plant of Norwood. At this location Norwood has an L.P. Air g&s plant with an hourly rating of 100 MCF of 1000 Btu equivalent gas at 13 psig, or 2400 MCF per day. During normal peak-shaving operations L.P. Air gas is mixed directly with the incoming natural gas and distributed through regulators to the low pressure distribu- tion system of Norwood and directly to the intermediate pressure mains. Norwood has propane storage in the amount of 50,000 gallons equal to 4600 MCF of 1000 Btu equivalent gas. In the event of complete failure of pipeline gas, the L.P. Air gas plant is presently capable of supplying the entire load of Norwood. During normal peak-shaving operations, a 50% mixture of L.P. Air gas with natural gas is the maximum permitted by interchangeability. District pressure regulators connecting between the high pressure feeder mains and the low pressure network at necessary locations serve to reinforce the pressure in the low pressure system. The low pressure system operates at 6.0 inches water column. Approximately 11 per cent of the customers of the Norwood Gas Company are supplied from high pressure mains and house service pressure regu- 1334 lators. The Norwood Gas Company has 4.2 miles of cast iron mains, 44.0 miles of welded steel mains and 23.9 miles of wrought iron or steel mains which have screwed or mechanical joint connections. The total of 72.1 miles of mains includes 13.7 miles of principal high pressure feeder mains ranging in diameter from 1!2 inches to 8 inches. 69.8 per cent of the total mains are 4 inches in diameter or larger. Wacuvusett Gas CoMPaNny The Wachusett Gas Company consists of two completely separated divisions, the Clinton division and the Leomin- ster division. There is no physical connection between the distribution systems of those two divisions. The Leominster division of the company has an L.P. Air gas plant and storage holder located at Mill Street in Leominster. The L.P. Air gas plant is a high pressure plant with a produe- tion capacity of 130 MCF per hour @ 10 psig of 1000 Btu equivalent gas or 3120 MCF per day. Fuel storage for L.P. Air gas produetion consists of 50,000 gallons of propane storage equal to 4600 MCF of 1000 Btu equivalent gas. L.P. Air gas as produced for peak-shaving is mixed directly with the incoming natural gas and routed to the high pressure feeder system and also through a pressure regulator to the local low pressure distribution system. A 90% mix of L.P. Air gas and natural gas is considered to be the maxi- mum usable mixture during peak-shaving on account of interchangeability problems with appliances. In the event of a complete failure of natural gas supply the capacity of the L.P. Air gas plant is sufficient to carry the entire Leominster division load of Wachusett Gas Company. The Clinton division of Wachusett Gas Company has no production facilities of any kind. There is at the Pleasant Street holder station a 150 MCF wet seal holder capable of supplying pressure to the low pressure portion of the town 1335 of Clinton, and tthis with a readily established emergency tie with Worcestter provides backup to this division, The Wachusettt Gas Company purchases all of its natural gas requirementss from Tennessee Gas Transmission Com- pany through tweo receiving stations; one located at Bishop Street, Leominster, and the other located at Barrett Street, Clinton. In the Leomimster division, the incoming natural gas flows through a 66-inch primary high pressure feeder which leads from the reeceiving station to the L.P. Aid gas plant at Mill Street, Lueominster. At the gas plant location, the gas is reduced in pressure and routed to the storage holder, the low pressure: distribution system and to the high and intermediate preessure feeder mains which extend into Leominster and ypart of Lunenburg. Approximately 10 per cent of the custoomers in the Leominster division are sup- plied through hovwse service pressure regulators from high or intermediate poressure mains. The remainder of the cus- tomers are supplied from low pressure mains in which the pressure is reeinforeed by district regulators connected between the high «or intermediate pressure feeder mains and the low pressure? mains at necessary locations. The low pressure system coperates at a pressure of 6.0 inches water column. In the Clinton, division, the incoming natural gas flows through a 6-inch primary high pressure feeder main which leads from the reeceiving station to the holder and regulator station at Pleasaint Street, Clinton. At the Pleasant Street location the gas iis reduced in pressure and routed to the 150 MCF storage> holder, the low pressure distribution net- work and to a igh pressure feeder main which extends into Clinton to ssupply a district regulator station. The district regulatorr station reinforces the low pressure net- work supplying C“linton and a very small area of Lancaster. SLES 1336 Less than 1 per cent of the customers in Clinton are served from high pressure mains through house service pressure regulators. Nearly all of the customers receive gas from the low pressure system which operates at a pressure of 6.0 inches water column. The Wachusett Gas Company has approximately 76.7 miles of cast iron mains, 8.7 miles of welded steel mains and 11.5 miles of wrought iron or steel mains with serewed or mechanical joint connections for a total of 96.9 miles of mains. This latter figure includes 10.1 miles of princi- pal high pressure feeder mains ranging in diameter from 4 inches to 10 inches. Mains which are 4 inches in diameter or larger represent 86.1 per cent of the total length of the distribution system. NO. 66 ers SPONDENTS’ _ 4 Rk “Res EXHIBIT _NO. 0% WS . OD 331AN3S BIMOd GNVIONZ M3N oz ol ° ——— a RRS ROE os anon 9. PEER Se ES 1355 RESPONDENTS’ EXHIBIT No. 89 ‘Nes, Exhibit £ £ Summary Effect on Insurance Costs Which Would Arise Through Severance of the Eight Gas Companies From The New England Electric System Holding Company System Total Insurance Cost Increase C jisia Ps a snount % Central Massachusetts Gas Co $ 6,534 / $ 26,070 | $ 19,536 | 298.99% Lawrence Gas Co ;, 18,166 59,082 40,916 | 225,23 Lynn Gas Co ‘28,016 65,500 37,48 | 133.80 Mystic Valley Gas Co 50,050} 16,835 96,785 | 193.38 | Northampton Gas Co 5,885 21, 709 15,82 | 268.89 North Shore Gas Co 22,511 675433 4h,922 | 199.56 Norwood Gas Co 3,061 14, 220 11,159 | 364.55 Wachusett Gas Co — 5,02h] 19,705 | 14,681 | 290.22 Total $139,247] $420,55h | $281,307 | 202.02 eatin L000 0 Central Mass Gad. ioe Data Res Ineurance Coverages in Effect (Bxocept Group Anmuity) April ’ 1960 “First Yoar Retention $3,900 Syatom Coveragus Yoar 1998 Repurate Conpary Covers, oe oe of Insurano Limits of 0 tdi a ' Liability . Liability Al) Riske Insurance, Contents of Motor Vehicles $100,000, 9 Would Not Insure Destruction of Valuable Papers 300,000, 3 $50, Automobilo Physical, Damage Insurance 20,000 22 20,000 (Fire & Thoft, eto.) | Bonds. Comprehensive Crime Pidslity $300,000. ) 30 $300,000.) 2510) HRS Comp Money and Securities 100,000, 2000. r Forgery 100,000, 100,000. M Collection Agente 10,000. ‘ 10,000, Fr Cpen Stock 100,000. 100,000,Would not insw 0 Water Heator Warranty Bond Various 700 0 Casualty Insurenca. 4 Workmen's Compensation Statutory 700 Statutory Personal Injury one person ~ $100,000. - $100,000, . one accident - $1,000,000. 1,000,000. Property Damage per accident = $2,000,000, 500 2,000,000. deductible 1,000. 1,000. Automobile Bodily Injury one person - $260,000 550 200,000. two or more - pe ata 060 1,000 e Automobile Property Danage per sceddent = $50,000 5,000. — primary (U ~ = uding gas sion tc Bl ray dina) rxplees ; $4,000,000, 50 $4,000,000. oxo a 6 on prop (property danage) $6,000,000. 5700 $2,000,000. ei Feplosiontnaurence Boilers, Air Tanke 110 150,000 = Benage Oao poston am 150,000 ; 5 ’ , amage to company distribution System, rat : $100,000, 25 $100,000, ~ Extra Exponse Insurance 67 ,000 270 67,000 Fire Insurance, Extended Coverages and Vandaliem & Maliciove Mischief 733600 1, 1,00 733, 600 = Rents Insurance 3,900 15 3,900 Sprinkler Leakage Insu. ence - - - ADMD, and Ad&H, Scheduled Schoduled anti ae me . onic Seo Attached Retention Seo Attached “a la Announcamont 450 Announcement 1,0 Total $6 531 $26,070 Loot Syaton Cbveragus Year 1956 Repurate Conny Coverage Tnounts ex ) “mounts or Limits of Cost Limite of ted Oc pe of Insurance uty $ Retina’ haurance Contents tor Vehicle: $100,000, 17 Would Not Insure iraiien of Wisthe howe 300,000, 12 $50,000, mot oa) Damage Insurance 38,300 60 38,300 t Taft, ete.) . 4 : : Comprehensive Orine . ) delity $300,000, 60 $300,000, Money and Securities 100,000, 100,000, Forgery 9000, 100,000, Collection Agente 10,000, 10,000, W Open Stock 100,000, 19000, Vater Heater Warranty Bond Various 19450 Various 's Compensation Statutory 2,200 Statutory - one aceident bd 1,000,000, 1,500 He per accident « 2,000, r) 2,000,000, deductible = $1,000, 00, le Bodily Injury one person « 000, 1,900 200,000, Sr escaese = 4°35 sb,oe ee of winery forsee “—" eae Lisbil ie ” $4,000,000, 140 $4,000,000, 4 “4 $6,000,000, 5 r) 200 $2,000,000, Air Tanks, eto. 750,000 225 750,000 (damage to pd 2 aletributdon System) $100,000, 90 $100,000, , 500 Ixpenee Insurance 233,000 830 233 ,000 1,700 Ingurance, Extended © 2 600 200 Tandalion Malicious Mischief 2,227 ,600 3s 7 2,227, 3» Insurance ~ - - - rkler Leakage Ingurance 6,600 7 6,600 7 life, A.D.AD, E led Retenti ®, A.DAD, and A.AH ee are y } aay noe ’ r a Announcament ’ Announcement . ’ Total $18 ,166 $59,082 #First Year Retention $7,180 5 Osis) nn Gas C ny (Company) Data Ret Insurance Coverages in Effect (Except Oroup Annuity) April, 1960 System Coveragus Year 1958 Kepurate Company Covoray, race oe a a eo f Insu 0. ve , Liability. Linbi lity ALL Riska Inmrance, Contents of Motor Vehicles $100,000, 7 Would Not Insure ( Destruction of Valuable Papers 000. o $50,000, Automodi1 foal Insurance py ta ee ae Th senate Bonda. Oomprehenoive Crime 0 Fidoiity $300,000, ) lis $300,000, ral Money and Securities 100, ) 100,000. Forgery . 100,000, 100,000, Collection Agente 10,000, 10,000, Open Stock 100,000, 200,000, Would not inn Water Heator Warranty Bond - = ~ « : Camalty Insuranda. Workmen's Compensetion ; Statutory 4 »000 Statutory : Personal Injury one person - $100,000. 100,000. one accident bad $1,000,000, 4,000 fer hy Property Damage per accident = $2,000,000, 2,000,000, a deductible = $1,000, 000. h -‘hutomobble Bodily Injury one person = $260,000, 1,500 200,000. Automobile Property Dama or secident = Boo. 3,080 ” by — = prinary (Usbeedi _ —— r excluding gas on property dine) ‘ $1,000,000, 300 6,,000,000, i Explos on ' (property damage) $6,000,000, 6,300 $2,000,000, Explosion Inaurence Boilers, Air Tanke, ete. 6,000 ,000. 270 6,000,000 : ; i to Soave totrsbution ( i Syston) $100,000, 120 $100,000, , Extra Expense Insurance 432,000 1,100 432,000 Fire Insurance, Extended Coverages and Vandalien & Malicious Mischief 9,000 Rents Insurance a a a Sprinkler Leakage Inourence is a “a Or lif oDmD, and AA, hoeduled eo - Seo Atteched Retention See Attached Announcement 1,300 Announcement Total 920,016 “T7 Data Ret Insurance Coverages in Effect (Bxcept Group Annuity) Syatom Coveragus Year 1956 Seperate Conpany Coverage Tmounte or ~""jnountes oF Limite of Oost Limite of Retimated Cc Liability. ‘| Udability y: Vehicles $200,000, | 60 Would Not Insure | ee 139,000 160 139,000 920. $300,000, 20 $300,000, 3 »460 Money and Securities 100,000, 100,000, ial r 100,000, 100,000, : 10,000, ' 10,000, Stook 100,000, /. 100,000, mi "SURES ater Heater Warranty Bond Various 4,400 Various 1s Compensatd, Btatu 5,600 Statutes 19 ,600 60) Jormad Sngerp one person = $100 000, cee 200 oo, , one accident = $1,000,000, 3,600 1,080,000. LS, 300 per onan = $2,000,000, , ' 2,000,000, ’ ; deduc # $1,000, 0. Intenobile Bodily Injury one person « $200,000, -| &,100 200,000, 16,100 Property” ee socidemt = feo 3,008. tees of prinary fonteedia™™ itil wane re, dimage) ¥ $,,000,000, 490 = “$4,000,000, 3,300 on 3 ) erty og) 46,000,000, | 16,100" | $2,000,000, 30,000 Air Tanke, tos 1,250,000 | 950 1,250,000 1,660 treten) es ey $100,000, 270 $100,000, 500 Expense Insurance di 566 ,000 2,200 566,000 ; 3,300 ‘ xt. ¥ ; (imudieystaiieloe'Rieetier | 62660,700 | 8,000. | 6,660,700 8,000 Insurance es 37,800 4S 37 ,800 4S ler Leakage Insurence 8,200 25 8,200 25 p life, A.DAD, and AckH, er | Retention rr. 4 Retention Announcement 3 2170 Announcoment 7 040% Total $50,050 . $1h6 ,835 *First Year Rotention $15,880 Tore forth Ghere @ee Se. (Company } Data Ret Ineurance Coverages in Effect (Except Group Annuity) System Coveragus Yoar 1958 “Repuraty Company Coveray, ranoce Limi . ia aes a f Insu ts of ts of Botinatyi wr 9 Liability. Liability All Risks Inaurance Contents of Motor Vehicles Seem 18 Would Not Insure Destruction of Valuable Papers 300 ,000 $50,000, Automodi1 joal Damage Insurance ee : Fire & Theft, ete.) 3,400 .30 34,400 3 Bonds. . hensive Crime ; Fidolity $300,000, } 90 " $300,000, 2,620 and Securities 100,000, 100,000. Forgery . ; 100,000, 200,000, Collection Agents 10,000, /. 10,000, Open Stock 100,000, 200,000. Would not insy) Water Heator Warranty Bond Various 2,500 |. Various Camalty Insuranca. | : ; ib Workmen's Compensation Statutory 1,700 Statutory Personal Injury Sad 100, 000. 100 cs one sceident = $1,000,000. 1,300 1,000,000. Property Damage per accident «= $2,000,000, 2,000,000. deductible = $1,000, 50005 Automobile Bodily Injury one person « 260,080. 1,400 200,000. Automobile Prope aah Fn i Nl Bowe Broose Bodh prascg 4 peiary (uae . eres excluding gas explosion property damage $1,000,000, . . 180 $1,000,000. Legal’ Liability fas Explosion (property damage) $6,000,000, 5,550 $2,000,000, Explosion Inaurence Boilers, Air Tanks, eto. 1,000,000 490 1,000,000 yo to peeves y dletribution System) $100,000, | 90 $100,000, 4 Extra Expense Insurance 152,000 650 152,000 Fire Insu Extended Coverages and Vandalien & Malicious Mischief 3,635,900 7,000 3,635,900 Rents Insurance 37,740 120 37 ,7h0 Sprinkler Leakage Ingurence 11,780 | 18 11,780 BGroup Life, A.DuMD, and AckHe Schedulod Retention. Schoduled Retentia See Attached 1 360 See Attached 3,710 Announcement ’ Announcement Total $22,511 - $67 133 | aoe *First Year Retention $8,530 ST I a AAR G TO RTPA wh 3h OLR DEL SILI TS UTD at Tor —Horthamotion fas Licht oy Data Ret Ineurance Coverages in Effect (Except Group Anmity) System Coveragus Year 1958 | Fepurate Company Coverage , Linite of. | a = of Eotinated ype of Insurance Liability Labi lity Coot) MA! ns@, ' 6 ‘ 4 Contents ole $100,000, . =A , Would Net Insure en We valuable eee 300,000. h. $0,000, 85 “y" Att ete.) | 19,800 23 19,800 110, Hdlity ees ; $300,000, ) 33 | $300,000, 2,400 Money and Securities 100,000, : 100,000, eF , —s Woo cer ‘ss _ vel *92 ee 169° carey 6x9 SL 6ot eH grrée etn "tg 9*Trs a 166 = oe emt rt ee an} Soret potees md eS ee CRE 650% Beh 06° 06°T? 696 965 ‘ gr‘ot "% 270 °629° aw est’ 6T%6 TS2“00z 0S9°€9T 62°26 €6°2 629° 96° ET°Oe Sescore FTI 892 692 *ET 000 £06z 6S WP “got rR 919% val gT*SE BRO wre 189 BEL . SST 18 2 ot 09'S gre €19*Stz Weg “05 LT or) oy : 9 2gs¢ Poh} ic) € wae RAST emt 9 902 go° mS * z oe ma et eel = Ge fe ames su oe me oe oe. Z Leite 98 eet 00 *t6 > gee osez Lon Pang > £099 a a Les*emL on ‘9m ene Tye je one ie gc. €r2 000 *2s¢ TEE “Mrz 060€ 9 alt TEE 66 lo*t iy pe OTT 26 19°2 S€5‘6S1 So°St OOT 6TL © Tre Jo 6 _" Q S°% «Ceo gtr 2m “TS eS i ger “ash ut + A ten Teter ri bid oct as cafes ig po 076 £L efezeay Seta suaney . “g ggrez efe*zoL “Zer a Se aes tes £6 : oP Fred eae Lez phy 7s sestst ait’$9 wdzog sau. © Seren, TELS 9 17S Sr2 000 ‘259 WX 6 3s ane a19°Np 96° 6g “TE E*OT TET ety sep t) ee oe geo) Saneioy id irs TIT Tt on a 6SL* 9*2 OT €99°6L 996 *9zT 000‘Lz 69t‘ gz°s w°9 106 ‘67S *€ S$s6°Ts se prin A Li OLL “E24 ° Le . 5 and Vendalion & Malicious Mischief 22,735,470 | 31,400 | 22,735,47q 32,400 | 22,735,h70 | 32,400 129,600 233 129 ,600 233 129,600 233 Trow Lite, 1.0.60. and La. Scheduled | Retention scheduled Retention| Scheduled | : See Attached | 8,825 | see Attac 1h, 16084 |See Attached 23,9ipem Total $139,2h7 $293,751 $h20,5Se *Minimum $9,800 - Maximum $66,200 *#Pirst year retention - $26,700 “First year retention - $43,260 PAS Ne. 1368 " SCHEDULE OF INSURANCE — Cases “B" Crans“C” Crase"DY Crass"E" Crane’ Crssgage ss than Ea i f. eevee teueeeereneee 1,501.00 1,501.00 501.00 501.00 001.00 Rate of Annual Earnings 0 $ Title Titles $3,501.01 $5.001.0 $7,501.00 $1001 than than than more $2,501.00 $3,501.00 $5,001.00 $7,501.00 $10,001.00 1, Life Insurance A, Deatn Benerit Payable in Lump Sum at death of employee Csss“A” Crase“BY Crase"C” Cusse"D” Crane” Caer “F Crasg ice to the named er: see eeeeeneeens $1,090.00 $2,000.00 $3,000.00 $5,000.00 $10,000.00 $15,000.00 $19,500. B. Totat AND Permanent D1saBILity Benerit Crase“A” Crass“BY Crase"C” Crsse"D” Crase“E” Crase"F Cras gr 1. Amount of Monthly Instalments...... $51.04 $52.50 $54.00 $90.00 $180.00 $270.00 $351m 2. Number of Months.......ccccccccce 2 40 it] 0 Ct] re] @ If you become totally and permanently disabled while insured under the Plan and prior to age 60, either sickness or accident, the Life Insurance will be payable to you, during the continuance of such disabi in monthly instalments as indicated. These amounts will be paid to the insured employee immediately upm receipt of due proof of total and permanent disability by the Insurance Company. - 2. Accidental Death and Dismemberment In- surance—Additional Benefits Cusss“A” Crass"B” Crass "C” Cusse"D” Coase "RE" Crass" F" Coss *¢° A. AcciwenTAL Deatn BENEFIT.......+.++ $1,000.00 $2,000.00 $3,000.00 $4,000.00 $5,000.00 $5,000.00 $5,000 Payable in lump sum at death resulting from an accident in addition to Life Insurance Benefits. B. AccipenTAL DISMEMBERMENT BENEFIT Crass“A" Crase"B" Crass "C” Crsss“D” Crase“EZ" Crase“F Cun "¢" 1. Loss of Two Major Members........ $1,000.00 $2,000.00 $3,000.00 $4.00000 $5,000.00 $5,90000 $snmm Cusss"A” Coass“B” Cuase"C” Coase “D” Crase"E” Craps "FY Cum" 2. Loss of One Major Member......... $500.00 $1,000.00 $1,500.00 $2,000.00 $2,500.00 $2,500.00 $2,500 Payable in lump sum should the insured employee lose one member of his body by accident, for instance on , one foot or one eye, Notz—Benefits outlined under AccipentaL Death AND DismempenMENT InsuRANce are payable only when Accidental Desi or Dismemberment occurs within 90 days from date of accident. z 3. Weekly Sickness and Non-Occupationa) c1sss"A” Crass “BY Crass "C” Crass"D” Crase"E” Coase “FY Cris "C" Accident Benefits ........ssccccessecses $1000 $15.00 $2000 $2500 $30.00 $30.00 $00 Payable for each full day of disability after attendance by a licensed practicing physician beginning with th eighth day of disability for a period of twenty-six weeks for any one sickness or any one non-occupation accident. The period of disability may be either continuous or intermittent. No w benefits are payabk for any — of disability resulting from injuries arising out of, or in the course of, any employment {s wage or profit. 4. Weekly Cost of All Above Insurance to Crass"A" Cures “D” Crass “eo” Cuase"D" Case" Cue "F* Cunt Each ployee eee eee eeeeeseeeeeeeses 25 cents SO cents 75 cents $1.25 $235 $3.04 I) & Automatic Increases In addition to the preceding amounts, each employee will receive on the anniversary date of his entrance int Group Insurance Plan an increase of $100.00 of Life Insurance and $100.00 Accidental Death and Dir memberment Insurance until five such increases have been made. The entire cost of these increases will k paid by the employer. = 6. Optional Methods of Payment . The amounts designated as payable in a lump sum under the Life Insurance will, if so elect, or if alts your death your beneficiary elects, be paid over a period in monthly instalments instead of in a single paymett SEE REVERSE OF THIS PAGE FOR SPECIAL FEATURES OF THIS PLAN 1369 Res. Ex. 92 RESPONDENTS’ EXHIBIT NO. 92A ; NEwW ENGLAND ELECTRIG SYSTEM 441 STUART STREET ann BOSTON 16, MASSACHUSETTS Oty > #arry Hanson a more VICE PRESIDENT A January h, 1961 a : Mr. Samuel Gishman mn Assistant Chief Financial Analyst E Branch of Public Utility Reeulation sae Securities and Exchange Commission 351.00 i Washington 25, D. C. o fF ~ d Dear Mr. Gishman: 7 sa = Y upon This is in answer to your telephone inquiry to Mr. R. B. Dunn & concerning (1) an explanation of the difference between the two figures 1 relating to insurance in Exhibit 91 and how the insurance cost was arrived ane at and (2) additional information as to blanket coverages and allocation 0000 of costs with respect to insurance shown in Exhibit 89. _— z With respect to (1) above, the difference between the figure of le $127,000 shown in paragraph A at the top of page 38 in Exhibit 91 and the verage, #120,600 in the last column on page 10 represents the amount of insurance et, one e savings which would affect other than income accounts in the year 1958, Ee The figure of $127,000 represents the gross savings in insurance costs unc which would be realized under combined operation as compared with inde- on © pendent operations (see Exhibit 92), nce one i With respect to (2) above, all of the policies shown in Exhibit al Dest Es 89 were systemwide blanket policies with the exception of the Water Heater g Warranty Bond, Legal Liability Gas Explosion, Direct Damage Gas Explosion, root % and Extra Expense Insurance which were blanket policies for the gas com- oe Pe panies only, and a few small policies written for Lynn Gas and Electric iad i Company prior to acquisition still in effect, However, certain of the payable blanket policies were not applicable to every company since in the case of ent {or certain companies no risk or exposure was involved. Of course, in this s event no part of the cost was allocated to such companies, ¢ ‘34 3 We are attaching a schedule showing the allocation of costs for ' each of the coverages between gas, electric and other companies, and the ore ye basis for allocation, nd Dit will be Sincerely yours s/ Harry Hanson Enc, THE NAME “NEW ENGLAND ELECTRIC SYSTEM" MEANS THE TRUSTEE OR TR NOT PERSONALLY) UNDER AN AGREEMENT AND DECLARATION © a USTEES FOR THE TIME BEING (AS TRUSTEE OR TRUSTEES BN aera eS eS pe it te a ee” wea, P % " yer “ _ - 2 ONE 2 PRES ho A Se AGE = aT Dini FS RS ee RDO SOM RSP ea were inn Rae Eas se pted sunypwesad ssoup rei se3es eTQerottdde pue eunsodxe TenzoRe — sSuctyenjTeaA Ayu aedoidg cf) seqer etTqeottdde pue sunsodxse jo uoTyeuTULISySp s,Afuedwop (1) sisjew so szequmN (H) yueudtnbs jo junowe pue eunzeN (0) senusasl ssoup (4) POTTeIsuUT SIs Pe JSI-~m -) JEQuaN (3) ssefeqtdue Jo tequmN (CG) serotyea JO uoTyenTeA (2d) trosseg (4G) SeToTyaa jo szequmy (¥) Res. L26°1TLE $29°S9 $ §S0°OTS$ lve °6€T$ ¥ 052°69 S92°6 099° 0S G2g°Q (uCTIUeIEN)°H¥ VW PUR “ayy “eITT dnouQ °ST c olo tL - ozo‘t 0s eoueinsul o#eyeeT seTyutTads “tT. I €1g‘t - 09S *T €€2 eoueinsul squsy *fT t 090° g9T 099 000‘ 9€T 007‘ LE °oqe “wSTTepueA pue 2 sefei1ea0) pepusyxq ‘soueinsul eJTY °ZT = I O€L*S - - 0€2°S soueinsul esuedxg e12xXG “TL H 6"9 - = 619 uoTsoTdxg sep e%eweg 4901TG “OT 3) SST‘ gz on 00g *Sz STE fz soqo SsyueL uty “SAeTTOG °6 d 051° ge - ° 0s‘ ge uotsotdxg sep AYTTTQeETT TezeT “*Q q mS TT 002‘T 0006 te ‘T Azxewtad jo sseoxqg */ Y ( efeweg Ayuedoig eTtqouoyny ‘ ‘ ° ‘ ‘ pue Aunfuy ATTpo_ eTtTqomoyny a 006" 69€ 0sL°2s oot gle OSL" gt s aaiiiie Aysedoig pue Arnful Teuosuedg q ( uoTyesueduoD s, usw 1OM aousinsul AytTTqeTT Arewtag °9 q o€n or * @ oft ‘ot puog Aquelrem JeyeeH 18qyeMm °S q S26°" S99 ool‘ 095 euTI) eATsueyeiduDD *h 9 25S*€ o6€ o9L*2 207 eoueinsul e8euweq Teotshyd eTtqowoyny *¢ ~ 66L ozt 009 6L siedeq eTqenTeA JO uoTzONIYSeq, *Z v ool $ SE 3 SES tr O€T $ SOTOTYSA IOZOR JO squsquOD “T UuOTIBOO TTY Te,OL setTusduwos setueduwp) sotuedww) jo stseg 120420 oF.1309 TH stp QS6T 1Beq - EeTNpeyos souBinsuy SZIMVIGISHAS Pue MHLSAS OLYLOSTA GNVIONG MAN o a3 - @ a yj . em3tq pey sezeotpul { ) of eT Te —« 0N"TSS—Si«CTOROTZ «= OR OHOE sotuedmoy sep 1u8Ty THCz a0 el" 9H 006° 2S O0€ "09 002"€TT fuedmoy sep 2zesnq70Rg 2U°Tz OOT*ST 007' 95 00S ‘TL | Lusdmod sep poqmrog : €2°Ts 000 Rs 00%‘TS 00%*SOT Auedmoy 2y37] sep w0ydmey10% ” nl*€z - 009°60T 000 zs¢ 009*T94 fuedmoy sep e.ys 42.104 rs a Te*0z Oot ‘Elz O0€ *6€0*T oon ztE *T Auedmon stp Astra, oT aly a8 HL°6y O0€ *TTz 005 *€Tz 00g *4zy quomtedeq sep-Ausdmon of.00Ty puke sep uty S33 st* ce 00T ‘92T 006 £0Sz 000‘ LE fusdmoy sep eouerary is Te*€9 00S *STT 008 “s9 oce*tgt Aredmoy sep syyesnqoesseq Ter} U89 es | Z (5) (n) (€) (z) (t) 2 % $ $ $ : 9Ue) Jeg woTzoNpey eouBvreAeS eloue eases 10437 e10 Jeg SGNSIIAIG (NV LSTYALNI SHOdHa UNV XVL AMOONI UALAY AMOONI SSOuD QS6T “TE BHEMHOMI CHINA SHLNON 3A THML (SHINVGNOD SVD 4D NOLLVESdO LNSINSIAONT ONINASSY) SSHNISNG SVD SLLESMHOVSSVN SHEL JO ZONVERAAS UALAV GNV FHOAWG SSINVdHOS SVD GELVITI4A¥ 40 SROONI SSOuD RESPONDENTS’ EXHIBIT NO. 94 “sds Ge. No, #4) z5°9" 009* 156 002 *O0T‘T O0€ *9S0°2 sojuedupy sep 3usTA Te}OL 9T°T9 006°2S 009° €€ 005 “9g , fuedwog sep qyesnyoem No°ee OOT‘ST 009 of 00L‘St fuedwo9 se) poomion gT°99 000 ‘7S 002 *Sz 002 ‘62 fueduoy 3y2TT sep uoqdmeyzi0N 06° 6€ 009‘ 60T OOT ‘SOT 00‘ tz Aueduog sep e10ys yyION qe°z€ oot S€lz 006° ELS 000‘ 1g fueduwog sep AeTtTeA oT7S4K 92°T9 OO€ ‘TTz 009‘ €€T 006° THE quewzredeg sep-Auedmog oOf1Q0eTA pue sep uutT 9T°€S OOT‘92T oot’ Tit 002 ‘ LEz fuedwog sep eoueimey TL°09 00S *STT 009‘ lz OOTSENT fuedwmog sep sqzyesnyoesseR, Te14UeD (S) (7) (€) (2) (1) ¥ ¢ $ $ quep Jed uoTpoNpeYy eouereaes e0ue1eaes aevsy er0yeg SCNACIATG WOd FIGVILVAY AMOONI JAN QgS6T *T€ BRGMHOAd GAGNA SHINOM FATIML (SHINVdMDD SVD 4O NOILVUadO INACNAdHONT ONIANSSV ) SSUNISNG SVD SLIGSAHOVSSVA FHL dO GONVUAATS WAlAV GNV quOda SHINVdNOD SVD GALVITI4AVY 40 ANOONT JAN © MALSAS OLYLOTTY GNVIONA MIN 1373 RESPONDENTS’ EXHIBIT NO. 104 Res. Ex. 10h NEw ENGLAND ELECTRIG SYSTEM 441 Stuart STREET BOSTON 16, MASSACHUSETTS Harry Hanson VICE PRESIDENT AND TREASURER June 21, 1960 e Mr, Francis H. Spencer ‘ Division of Corporate Regulation : Securities and Exchange Commission - Washington 25, D. C. 4 ‘I Dear Mr. Spencer: Res File No. 59-102 # Pursuant to the request of Mr. Leon Ware, we are submit- te ting herewith schedules showing a breakdown of amounts in the Ebasco 3 studies of the changes in costs of the eight Massachusetts gas companies 7 of NEES resulting from severance, together with an estimated distribu- q tion of increases in operating expenses by major accounting classifica- 4 tions. In view of the fact that no estimate has been made of the allo- a cation of charges of the "Central Organization" under combined operation among the eight companies, totals only have been included for combined operation, In addition, since some of the increases in operating expenses are considered allocable to production, and since production expenses and purchased gas were excluded from the summary. tabulation of 1958 operating expenses of Massachusetts gas companies which was submit- ted as Respondent's Exhibit 90, it would appear that the column entitled "Total-Pro Forma" of that exhibit should be revised to exclude the amount allocable to production, A revised summary tabulation is enclosed. We are sending you herewith four copies of each of the above-mentioned schedules. Sincerely yours s/ Harry Hanson Enclosures NLY ITS TRUST ESTATE, ANO NO SHAREHOLDER, ABILITY THEREFOR. 137 3 ° ° = ad Bal 2 5 3 i= eseeioeg seqoueg ( ) OO9'S9T 1S (00s) § ~~ OOT LET IS ON HES O02 S28 00s S90 TS (OOO BEE 000°S67'T (005 ) oo.*é67T*t Cod“ gE 002 *S2 00g “Sge“T (oog"""1) 005 “96 002 ‘2 002 “TOT oon T ooo'€ 00996 - 006‘ 62 000‘ T 006‘O€ oo€ 00s OOT‘O€ 006‘20T (002) 00g ‘gl 00g 005 *T 005 “92 (oo €2 ) 009‘ TLT 00g ‘7 006‘O9T 00g ‘T 000'2 OOT‘ LST (00S *gT) 00L‘ 60" 000‘ T 002‘ LOY 009°" 000‘ L Oot *96E (000'€) O0€ L9€ (o0L‘T) 002‘ L9E 00092 002 ‘S 00S ‘9€€ oot‘2 009° 602 (0089) 009* Toz oog‘2 i(‘iéiéOS'E O0€ *Sé6T (002 *T) oos‘zot $ (00g) $ OO WOT $ coocTs o0s‘2 $ oon'46 8 (00g) $¢ *L°I‘*d stojeg ewoul ew sul ss01n Jo But ze1edou0N quemsenf py TeyOL TOT “Ok 3FAFUKT “sey Suotyonpeg Sexe, uUoTyeToerdeg (peyoeyzy Ses) enueacy enueasy sesuedxg Sut ze108do Sut yeszedo Sut ae10edo z9420 SuoTjonped enueasy Sup es06do SINNODOV SMOONI NOdN GONVUSAGS JO Laaia LAN dO AaWOMS a a 09/02/9 uoyzzeredQ peuTquoD uotzeredg quepuedepuyl - Teo] fuedwod stp a3esnyoem Auredun) Se) poomion Aueduog qyst] sep uoqdue:;7.10N Aueduog sep er0ys 310N fuedwop sep AeTTeA OTISAR queujiedeg sep uut] fuedwod sep eouetaey fueduod sep sqqesnyoesseRl TerqUeD uotzer1edQ Yuepuedepul eseaiseg seqoueg ( ) Res. Exhibit No. 10k 005 °S90' TS 00g’ 1098 (coz *2)s 00S €2e$ coz TS 00l"gl $ 00S ees 00g "See *T o0g* Tg oot 97 00g “E2€ 060 CH 008 “9"T 009°" 008° 96 O0€" 9 (00g ) Oot’ TT ool*T OOn‘OT OoTte Cot ‘oe cou‘te (007) oot (002 ) (006) (007) 005 ‘OL 00g ‘LE (008) 009*S2 000‘ 0026 0oL‘T ‘2 OOT‘ LST 002‘ Lt oo2‘g oot ‘sz 00n's 009° Te 009°6 “ OOT‘96€ 00S ‘9T2 00L‘OT OO€ ‘60T 006*h 000‘ 6€ 00L‘ST 00S “9€€ 002 *9ET OOT ZT 002 ‘S2T 002 ‘Sz 005 ‘Sz 00£ ‘9 OO€ ‘S6T 006‘ONT 000‘ ET 009 2T 002 ‘2 00S ‘02 oot ‘9 oon'i6é ¢ oolf2l $ (006) ¢ OOT‘TT $ oog ¢ 002 ‘TTS 00S ‘2 ¢ Tew CaTIVIGSTUTUPY SSOUTSNG wON TeToreuMD) DoTaeztipan UOTINQTIYSTG woPyoNporg pue Te1euep 09/02/59 uoTzs1ecdO peutqun9 UOTYZ10AO Yusepuedapul - {-40] Auedupg sep yyesnyoey Aueduog sep poomion Aueduo) 317 seg u0qdueyzso0y Auedupoy) sep azoys y.ION Auedwog sep sat Te, oT ys AR quewyredeg sep uusT Auedwp) se9 sousie] 4uedmog sey SyZESNYyoessER Ter4ue9 uotyetedQ yuepusuapuy TONVEGATS MOUT ONT LINSTY SISNGdXa ONT LVYSdO NI S3SVSYONT JO SSINVd ROD SVD SLLISNHOVSSWN LHOIG NOT “ON Stating *sey NOIINGIYLSIG GaLlvArLsa 60°SES OLE “TOS *ELEZTS Res. Exhibit No. 104 1376— ie te = 95°8 €€g*zgL*9 19°S cit za a (q)¥mr0g Gig=THO] TINO TH}C] NOT “ON 9¥QtuxXE ‘sey *peyared> 4; uspusdepey ezen seyuaieoo se8 Coen J} secucixe peqwyjse TeuwT I Tppe end sesusdxe TwAce Ore sumTCO seeq, UT samy (0) *queqstsas qou St se3 lg Gy OF UOTEeAuCO Jo BuyUT, PUe qUeTTe se #780) UOTEIEAUDD Jo WOTZ YET }JONY JuTpaToUT you (*) MOG*CCT “BOT ece* as Lé96OC MW 6S *SCOS LES £96°ZtL°R S9B°NSE Se) *erm eacge Tre Jo every efizesy Sejredex 2970 RSs hal w bch be hie: nN 7 wunnwe RHRIZEL ICS a9 3 Nn R248 344 yqeggsen 1377 RESPONDENTS’ EXHIBIT NO. 104A DATA* SUPPLEMENTAL TO RESPONDENT'S Ex. 90 Massacuusetts Gas Companirs 1958 Operating Expenses Per Customer (Exciupine Propuction anxp Purcuasep Gas) Pro Forma, assuming combined operation of the gas companies after severance. Amount Per Customer Transmission and Distribution $1,648,156 $ 6.99 Utilization 836,008 3.95 Commercial 1,429,994 6.06 New Business 1,243,300 5.27 Admin. and General, less depreciation but including Pensions & Welfare 2,648,375 11.24 _. Total — pro forma $7,805,833 $33.11 ‘ Not including Amortization of Conversion Cost. * Supplied to the Staff by Harry Hanson, Treasurer of NEES, via telephone. 1379 RESPONDENTS’ EXHIBIT NO. 105 Res. Exhibit No. 105 (1h Pages) INCREASES IN COSTS UNDER COMBINED OPERATION The following analysis sets forth in summary form, the effect of combined operation (separate from the NEES System) versus System operation in the year 1958, or the net effect of severance a8 & group upon the operations of the eight System gas companies, Under Executive, Administrative and Staff, the Pro Forma Payroll has been taken from the Supplemental Report (Exhibit 91), while the actual figures shown are derived from the Gas Severance Study - Volume I (Exhibit 58~A). Under the various other sections, the increases in cost have been sumarized from the Gas Severance Study (pages 136, 237, 348, Lb7, 537, 631, 725 and 831), except where changes in operations have been contemplated under combined operation versus independent operation, Each change is explained in a note or by a Supplementary Schedule detailing the basis of the change, using 48 @ source the Pro Forma figures in the Supplemental Report and Actual figures in the Gas Severance Study. 1380 Executive, Administrative and Staff Payroll Taxes and Billing Expense Fringe for Payroll Reimbursement Benefits Services Pro Forma (combined operation) Central Organization $574,300 $35,000 Local Organizations: — Central Mass, Gas 31,1009 Lawrence Gas 43,890 Lynn Gas 58,800 Mystic Valley Gas 61,600 North Shore Gas 60, 300 Northampton Gas 37,309 Norwood Gas 32,009 Wachusett Gas 31,000 930,800 35,000 Adjustment to reduce salaries to average 1958 levels (uh..400) 886 , 4,00 35,000 Actual (System operation) (529,900) (16,000) NEPSCO ($235, 300) Billed by Worcester (5,500) Payroll taxes and fringe benefits on increased payroll $53,500 6,509 19,000 00 $2L0,800 ( ) Indicates red figure The total increase in Executive, Administrative and Staff costs which would re from combined operation would affect the accounts of the eight gas companies as fo! Operating Expenses wee Payroll Taxes 5.500 Sub-Total 205 900 Clearing Accounts (12,600) Other Accounts 100) 3 200 _ — (1) From pages 12h, 225, 332-3, L432, 526, 622, 719 and 621 of Exhibit SBA. 1381 ‘ Production, Distrjbution, Utilization and Garage Other i Operating Operating Payroll ty Revenues = Expenses_ Taxes Total 3 mi ootal Central Mass. Gas ($ 200) ($ 200) (* Lawrence Gas 4,000 ; »000 ‘uf lynn Gas 27,800 $ 600 28,100 “af Mystic Valley Gas (1) ( 1,100) 400 . ( 700) ‘qf North Shore Gas ($1,800) ‘6,700 | 8,500 ‘jf Northampton Gas : 5,600 100 5,700 ° | Norwood Gas ( 600) ( 600) _ Wachusett Gas 100 100 Total $1,800 42,300 $1,100 45,200 Operating Payroll Nonoperating Expenses Taxes Income(1) Total Central Mass. Gas ($ 5c} $ 800 Lawrence Gas ( 6,800 6,800 > lynn Gas (2) ($13,500) ($200) ( 1,700) (12,000) ' Mystic Valley Gas 4, 700 100 1,000 »800 _ North Shore Gas 4,800 ( 4,800) _ Northampton Gas ( 700) 700 §) Norwood Gas | 1,000 ( 1,000 ‘fe Wachusett Gas 2,700 ( 2,700 Total (3 8800) ($100) (t 500) ($8 00) fy Included under Merchandising A2) As per Supplementary Schedule No, 1 1382 General Accounting Operating Payroll Expenses Taxes Total Central Mass. Gas (1) ($1,100) ($200) ($ 1,300) L Lawrence Gas (1) 100 6,700 M Lynn Gas . 5,000 5,000 N Mystic Valley Gas 8,000 100 8,100 N North Shore Gas (1 5,800 100 5,900 N Northampton Gas ~ (1) 400) . ac W Norwood Gas (1) 2,200) ~~? 2,200 Wachusett Gas (1) ( 4,300) 200 4,100) $17,400 $200 $17,600 (1) As per Supplementary Schedule No. 2 Customer Accounting Operating Payroll Exporeee ae Central Mass, Gas $ 18,000 ¢ 600 $ 18,600 . uwrence Gas 26, 800 300 lynn Gas 13h,,000 1,700 Mystic Valley Gas 133,000 1,800 North Shore Gas 45,900 700 Northampton Gas 31,000 4,00 Norwood Gas a! - Wachusett Gas 20,900 500 $109,600 $6,000 $15,600 Machine Accounting Operating Payroll Expenses_ taxes, Mystic Valley Gas 13,00 $100 1383 Stores Operating Payroll Expense Taxes Total Central Mass. Gas 2} $ 800 $ 800 Lynn Gas (1) 300 200 500 Mystic Valley Gas ~ - - ' North Shore Gas { 3,000 (100) 2,900 _ Northampton Gas (1 200 « 200 Norwood Gas - - - Wachusett Gas ==‘ (1) 200 =. 200 Total | $9,200 $ 300 $9,500 rr (1) As per Supplementary Schedule No. 3 Miscellaneous Services Operating Payroll Expense Taxes Total Lynn Gas $15,700 $200 $15,900 Facilities (1) Other Operating Operating Property Revenue Expenses Taxes Depreciation Total Central Organisation = - $37,000 - - $37,000 Central Mass. Gas $ 1,000 10,900 - - 9,900 Lawrence Gas 1,800 22,100 $ 1,000 $ 500 21,800 lynn Gas 2,100 14,000 22,000 2,700 _ ~ 36,600 Mystic Valley Gas (19,700) - . (19, 700) North Shore Gas (14,700) ( 5,900) - ae ae 800 Northampton Gas 23, 300) - ~ - 23,300 Norwood Gas ~ - - - Wachusett Gas - - - $33,100 1384 Insurance (1) Pre Forma (2) Actual Increase (3) Total _ $293.70) $139,300 $151, 1,00 Not allocated between companies 2) As per Exhibit 91 3) Operating Expense Transportation Operating Expenses Total (1) Mystic Valley Gas ($2,500) __ ($2,500) ( (1) As per Supplemmtary Schedule No, 5 Professional Services Pro Forma Actual Increase(1) Independent Audit Central Mass. Gas $ 2,500 $1,600 . $ 900 & Lawrence Gas 2,500 1,600 900 (2) Lynn Gas 2,809 1,100 1,00 Mystic Valley Gas 2,300 1,600 700 North Shore Gas 2,900 2,300 600 Northampton Gas 2,500 1,600 900 Wachusett Gas 2,500 1,600 900 Central Organization _ 3,000 - 3,000 Outside Legal Services 10,000 ~ ____ 10,000 (2) Total $32,700 __ $12,700 $20,000 f Operating Expense 2) Indicates Additional Cost 1385 7 " Wacellaneous Other Operating Operating Payroll Revenue - Expense Taxes Depreciation Total Central Organization(1) $25,300 $100 $ 25,100 Local Organizations: Central Mass. Gas 1,500 $ 2,500 4,000 Lawrence Gas 10,000 3,000 13,000 Lynn Gas : 12,500 2,500 15,000 Mystic Valley Gas ($3,000) 32,900 7,000 42,900 North Shore Gas (8,400) 2,000 (6,400 Northampton Gas ( 100) 300 1,500 1,900 Norwood Gas 800 500 1,300 Wachusett Gas : 1,200 3,000 4,200 Total $3,100 $76,100 $100 $22,000 101 (1) As per Supplementary Schedule No. 6 oo « 009*S9T*T$ (00S$) oo *9€$ 002 *“Sz$ 00S “590° T$ (0009E$) 007*€S P oon €s 002 *2TT ‘Tt (00S ) 00 *9€ 002 *Sz ooT*zto*t (o00‘ge ) oof ‘TOE 0OT 000 ‘22 oot ’9l (QoT‘E ) 00002 000‘02 (005 ‘2 ) (00S ‘2 ) 00'* TST 007‘ 7ST 002 72T 000 ‘ €2 ooz‘€ $ 006°19 (OOT‘EE ) 006'ST 002 00L‘ST 005 ‘6 oo€ 002 6 00S ‘€T OOT 00 €T .- 009°ST" -000'9 009* 607 009' LT 002 007* LT (oo7*g ) (00S$) (OOT ) (00g *g ) 002 £5" OOTT oo€ £27 (oog‘t $) 006‘S02 ¢ 005°S ¢ 007‘ 00z$ TeIOL @mo OUT Soxel uot epoeideg sesuedxy enusasy But eredouon Butzesedg But zeredp 19420 we yskS SHIN 94} wig dnoln y Sy soURTeAeg yZnory], $3809 uy seBuey) woiy esftty PTNOM YOTUM sotuedmuo) sey qUuZTa e8UR JO SyUNO.Zy eWDdUT 9eUy UO YeTTA WON 94R JO ATeWUNS WaISAS OIWLOGTA GNVIONS MAN eansty per seyectpulr ¢ ) SyUNOdSoy BuTsBeTD JO uoTyNqtszzsTd Teq0 J-qng SNOSUETTOOSTR SSOTAIeS TeucTSsesctdg uot zeqrodsues] aoueinsut SOTUTT TORI SOOTAIOS SNOsUBTTSOSTH $8104S BuyquNosoy SsUTYSeR Butqunoooy J8euwo4sny) ZuytyuNoosoy Te1eue) ssoutTsng mon eseie) pues UOFIZTTTIN SUOTANQTAYSTG ‘uOTIONpold JJe4S pue seaTyerystTutupy “eaTynoexy Sexe], [TouAseg (009 ~—Ss*) (I *TOA-gEE *d) soz pazunoodoe ATquenbesqns Butstpueyouey (00S*€T $) sesuedxy Butzesedg *SMOTTOJ SB 8Q PTNOM Sen UUAT Jo SsquNOdDe |ayy.uodn yoazze oul 1387 (oo€ ‘ 7T$) 002 OTT# 006 *S6¢ 00S ‘2T¢ (002 * 7$) 009‘ Leg uufT eseoet out Tenzoy BUuLIO Olg SyTjyousg S[eAa9T TTo1seg TRO] TeqO] esut.y gS6T BUIOY Org pug e8eisay Soxel 04 TTo1sedg queunsnft py T “ON @Tnpeysg Aruemetddns ssoutsng MeN numii-_-_witnmaes mpemneemweeee 8 £& FT 2 “ON eTRpeyos ArequeweTddngs Prrosccemenes co ne (ooT*T ) 002 (ooe ‘7 ) (o0z‘2 ) - (o0z*z ) (00S =) (OOT ) (oon =) 006'S OOT 009 ‘Ss 00L°9 OOT 009*9 (oo€ ‘T$) (002$) (oot‘T$) TewOL Sexe] “posuedxq Trorkeg But ze198do GMOTTOJ SB OQ PTNOm SeTuEdmDd eseyy JO SUNOSOV Sy} uoddn qoeyye eu], x (oot't ) o07%22 OO€ ‘gT 0012 (oog ) 002°9T # (ooz*2 ) Ool*€t 00S * TI 00S ‘T (00S =) 005 ‘OT oF (00S ) o0€*22 008g ‘ T2 00g £z (000‘T. ) 00002 0065S 000‘o€ 006 ‘SE 002‘. (009*T ) 00g ‘z€ 00l‘9 ~—-— COT SOE 00g 9€ 00g (o09°T ) 009‘ €€ (oo¢*T$) 009‘ 6T$ oo€ *gT$ 007'2¢ (oog $) ocl‘9T$ esealoul Tenypoy Buy Clg SyTjeueg ST[SAsT Tro1keg TROL TROL e8utty S61 WUIOY O1g pues SSBIBAY soxel] oy TTo1keg quemyenfpy x 7, sep yQesNyoRM SBD) POOMION sep uo zdueyz.10N SB) SIOYS YPVION SB eous.lAR'T] Sep *SSeR Te.13U9p ‘sep Q3esnqoRM SBD POOMION sep v0zdueg710N SB) SIONS YWON SeD SoUd1MeT sep *sseR TerqUe Buyqunoooy Tezsuep we SSN PRP EB FET bes 2 0022 - 00z SP) QQesnYORy L*t 005 ‘T - 002 Ea 0062 — on€ *g 002 ‘TT 00S *t (00S) 002 oT Sep qqesnyoey | a 00L*T Oot ‘6 008 ‘OT oot ‘T (00S =) 006'6 Se) woydueryz0N - oolflz sé OL Fz 009*€ ~ (00€fT ) 00% ‘Sz Sep S10NS YrION : Oo€*2t = CoT‘zT 007‘ tz 002 € (OoT‘T ) ooc‘z2 sep uuty 6 000*ZT _ 000‘OT 000 Jz * 005 *€ (00z‘T ) 00 ‘tz Sep souerme] ‘ oo7*2 $ oog’e ¢ 002 ‘TI$ 005‘ T$ (00S $) 002 ‘OTS - $8D *sseR TerQUe9 : eseeiouy Tenqoy WmIO, Olg += sytjyeueg: ST2A9] Trotheg Tew] Teo] e2ut.y gS6T WmIOZ Og pues e2ereay Sexey oF 1590 ee -— >= [ew eee we * pSUCTRBSZTUeBAQ [Te9C], Suz AOZ SQUSWSITNbe« eowds UF UOTZONpe BuyP Ace T sew (T Q *ON STRPEYoS srequowetddns 009 ‘ZT - - - oot’9 005 ‘9 - €2 - - - . - (oo€ ‘€2) - - ” - (006*S ) (ool‘ TT) (009 OT) ooT‘6 - (o0l‘ 6T) - 00S ‘gf 00L‘2 000£22 - 006‘T 000‘ TT oot ‘2 00122 00s ¢ 000‘T $ (009°9 ) 002‘ L oot £22 009 ‘T ool‘ ET - * (006‘T$) ool ‘S$ 006‘OT o000T $ ooo‘ LE$¢ - - - - 000‘ LE$ ° (2 )TeIOL UOT PBTIAIGEG sexe] Sutseety BuyteeT) esuedxg emo oul f£qaedoig u0tTyeqrodsuesy, S3104S But zeredo But ze108dop 19U30 :SmOTTOJ se oq pTnom sotuedups eseyy JO SjUNOSOB SR uodn yoesze eu 009 ‘ZT 000 2 - 000 L 009 6T - 009' 6T oo€ £€2 (00€ £92 ) oot *92 - (000‘€ ) o00f € - 009 ‘8 oot 00g ‘TT 002 ‘ET 002 OT (006£2 ) oo¢ £2 (009°0T) 009*Sg - 00g Sg 002 *SL - 002 ‘SL 005 ‘gf - - - 00S ‘gE oot £z 009‘0" 007 £22 006'SE 002 ‘T oot ‘LE OO€ 9S 000‘ € oof *T9 ool‘ €T oo7'e $ oog $¢ 002‘6 $ oot ‘zz 00g‘ T$ 006‘ €z 000' LE$ 000‘ LE$ > 000‘ LE¢ esestoUT Tenqzoy 90 DUT sTeyusy BuIOy Old eww dUuT (1 )3809 Teqo] Tequey JO 84809 TROL Tequey Tequey Tenyoy Tenzoy BUIOY Clg Buoy Og _——— ss —— ee Sep ZJESNYOeM SBD POOMION sep uo zdueyzI0ON sep S10US YVION sep AeTTeA OF3S4A sep uus] SB) 9oueIMEy] Sep *SseR Te14UaD é sSuoTyezpuesIQ Tey — uoTIeZ~UesIO Te1queQ sep 2 esnNyoORM SB poomion sep uoqdureyzi0N Sep er0US YzION sep AeTTeA 9T3SAR sep wus] se eouetMeT sep *sseR Ter4ueD :SuOTIEZTUSBZIO TBST uoTJEZTUeBIO Ter4US) SOTIETPOCL PNGB SE OTRO RIE BPRS IA LMT ES 1391 a ~n an at 8238 8888 Tey] S “ON @Tnpeyos Arequemetddns oor Teg (005 *2$) oo€ £2 , (00g * ) _ (009°€ ) 000‘ € 00S ‘T 00S ‘T 000'S 00S ‘1 000'S 000 £1 000 ‘€ 005 ‘OT¢ ~~ SupIBeTD esuedxy uotzeyIOdsueszy But ze2108do Tel ueqinqns oJ - ueqinqns worg - oT48AR 109899104 WIT - Ter4UED (3U3TTTa) Tenqoy SBD VJesnYyoRy SD poomion (ZupofAteg) sep u0ydueyzi0N (SToTYea [T) sep u0qdueyzr0K (®8TOFYeA [) S¥p azoYS Yy~I0N: (SeToTYyea €) sep LoTTeA OT I SAR (SeTOTYS4 €) sep uusy (sitedey s0feq) sep SOUSLMET (3upotames) sep -ssey Ter4que9 (SeTOTYaA Z) SeD *SseR TerQU0E9 (seToTYyea 1) UOTIES~uUSZIO Ter4uUag BUOY O19 wot eyzrodsuvs J 1392 S *ON eTnpeyog LrequeweTddns uo umoys §3S09 uotTyeyodsuer4 uT eseatoep yeu Jo eaTsnToOXY (T) (tT) ootoe$ 000 ‘S$ ooT$ Oo€ *S2$ TeqOL 00S "90S ; Jooyos soTArIeS 0072 007'2 BuTuoTyTpuog ITY 00s‘T = | 00S *T sattddng pue sTetseqeR AQezes 000 *" 000* 1 eutzeseq sakotdug ATYWUOR 000 2 ooTt$ 006‘9 ZutiseuTsuq yuepnys 000‘ ST$ 000 ‘S$ 000‘ oT$ -« gaoTares souRuequTeW queTd sed pue Iepl[OH [eq] syunoooy Sexe] esuedxg . 19490 Trorhed But ze128ed9 9 “ON eTNpeyos £reqyueweTddns SNOSUPTTSOSTA SOAR RE EEE A 1393 RESPONDENTS’ EXHIBIT NO. 106 [Letterhead — New Enouanp Execrric System] December 7, 1960 Mr. Samuel Gishman Assistant Chief Financial Analyst Branch of Public Utility Regulation Securities and Exchange Commission Washington 25, D. C. Dear Mr. Gishman: This is in answer to your telephone inquiry concerning reconciliation of the $1,300 increase in ‘*Executive, Admin- istrative and Staff’? payrol] and expenses (shown on page 719 of Exhibit 58 A), which would result from independent versus system operation of Norwood Gas Company, to the accounting effect of such increase for the year 1958 as shown on page 720 of Exhibit 58 A. In 1958, Norwood built a liquid propane plant and Nor- wood’s 1958 actual payroll costs (see page 709 and second paragraph on page 719) included $6,800 for payroll plus $1,600 related fringe benefits and expense reimbursement, an aggregate of $8,400, for the engineering services of the Malden Gas Division which were charged to plant. Under independent operation, the Executive, Administrative and Staff payroll and expense for 1958 (see page 718 and first paragraph on page 719) would have been all chargeable to expense, except for $1,900 which is considered to be the normal administrative payroll charged to construction. Other engineering services, such as was necessary in 1958 in connection with the liquid propane plant installation, would have been obtained from an outside source and charged to plant. Moreover, an additional] $1,200 of Nor- wood’s actual payroll was charged to other than expense accounts, i.e., $1,000 to merchandising (see top of page 721 re merchandising) and $200 to clearing accounts which, or cate PAC 8 eA MET YN ROTI ESAS FH RR ay 1394 it has been assumed, would have been charged to expense under independent operation. Therefore, the $8,400 appli- cable to the engineering services of the Malden Gas Division plus (a) $1,200 of Norwood’s 1958 payroll charged to other accounts, (b) $6,800 estimated increase in payroll resulting from independent operation, (¢) $500 increase in annual expense reimbursement and (d) $800 increase in payroll fringe benefits total $17,700 from which was deducted the actual NEPSCO billings of $7,000 charged to expense in 1958 to arrive at the $10,700 increase in operating expenses as shown on page 720. I hope this explains the situation to you. If not, please phone and we’ll try again. Sincerely yours (s) Harry Hanson 1395 RESPONDENTS’ EXHIBIT NO, 107 KES. “%o NEW ENOLAND ELECTRIC SYSTEM Gas Subsidiaries Insurance Coverages in Effect (Except Group Annuity) - Annual Cost Per Policy Billings Amounts or Limits of ; type of Insurance Liability 1954 1955 1956 1957 1958 1959 | Risks Insurance B sotente of Motor Vehicles $100,000 $ 9% $$ 150 $ 15% ¢ 150 $ 130 § 130 Destruction of Valuable Papers 300,000 70 70 70 79 79 79 tomobile Physical Damage (1) 183,200 230 230 250 250 4o2 42s Gonprehensive Crime . Adelity 300,000 ) Money and Securities 100,000 ) 540 540 520 520 560 800 “Forgery 100,000 ) ; Collection Agents 10,000 ) “Open Stock 100,000 ) ter Heater Warranty Bond Various No Coverage 27,300 12,600 12,700 10,430 8,860 Insurance Workmen's Compensation Statutory 23,700 15,500 19,800 21,900 15,900 18,900 Personal Injury one person = 100,000) one accident- 1,000,000) TOPS! ty Damage per accident- 2,000,000 11,500 7,600 19,700 20,100 12,000 10,200 deductible - 1,000 lutomobile Bodily Injury one person ~ poe c ; ; two or more = 1,000,000 15,500 10,200 11,300 10,900 10,850 13,000 intonobile Property Damage per accident- 50,000) Wess of Primary (Umbrella cluding gas explosion joperty damage (2) 2,000,000 No. Cov. No. Cov, 800 630 1,2hh 1,320 ml Liability Ges Explosion (3) 2,500,000 25,600" 34,300" 37,600 39,200 38450 38/450 sion Insurance ert, Air Tanks, etc, 1,250,000 1,500 1,500 1 1,6 2,31 2 Danage Gas Explosion *100/000 "bho "Guo "eho "elo "él "eis to Company Distribution System) imense Insurance (4) 848,000 2,340 24340 3,708 2,900 5,730 5,730 deurance, Extended Coverages dalism & Malicious Mischief (5)1h,348,900 30,200 = 23,300» 23,200 24,500 31,00. 36,300 129,600 No. Cov, No. Cov, No. Cov, 250 233 233 ge Insurance 23,250 50 50 50 50 50 50 eet ALD.&D. and A.&H. (6) - 6,600 5,700 5,800 6,700 _ 8,825 9,990 Total (7) $118 ,565 $129,420 $137,880 $143,119 $139,247 $17 ,432 (1) Amount of insurance increased to $ 329,600 in 1958 (2) Limit of insurance increased to 4,900,000 in 1958 (3) Limit of insurance increased to 6,000,000 in 1958 4) Limit of insurance increased to 1,613,000 in 1958 (5) Amount of insurance increased to 22,735,479. in 1958 (6) Cost indicated is Insurance Company retention . (7) Totele for years 195) through 1957 do not include Gas Dept, of Lynn Gas & Flectric Co. yuuky, Zuppntoxe ‘seTuedwop 1 - °09 OTrROeTY pue sep uusT jo °ydeq sep ZoNpeq | Il9 yossy 07 ATTedpouTad pesreyo eoueTed suoFpoUpeg Te4+9L TezO] | > — a A 028° 06 3 zeeve © zepretts Rese 109°Z 80%‘ 12 96E ‘9 9ST ‘OY 28S “92 619°ET yeots $ —~“6s6l Brae E1°Z ase ‘gt 92 “4 ZSS ‘SE 001 ‘92 £€9"ET Szi‘y $ “eset Be9 tis “E89 "OC TS — Tore 96°C 798‘EZ Sit's 669 ' 64 ~~ zzt'oz L£9z°9T - ) gsz‘s $ Ker Oz * ET z*s $ "$S6t SATENTIUL 6061 - YS6T 8290}, | 149 9 yuNaDDY *N’a’d RRND NS PO PEO ROE MES MOOS LTRS ASTER | “3? - 32's 282 28°13 @2-2ti te Pew sesso! *-n’a°a -sewm o2 Ss22cdey Twunuuy -: so2znc0s "O°2°S YIM SButt TF UF STQVTFVAR JOM »y Teo Tots Teo’ tore OvL*Y $s9°t SEG TZ 6SS‘S 7$0‘ SY eyoog 20d soupinsuy 30 3809 yengoy S3IwadaHood SVS 8 STAN (uukt Suypnyoxe **809 £4) TBIOL (*3daq 805) ‘OD ‘98TZ puy ev uutT :UOFIVUTUT TZ 1830], °O9 SB 29SSnyoORR "OD 885 poonzoy ‘OD ABD SIONS Y4I10N °O) 3YSTT SVD uOIdwEYyII0N "OD seg SOT 1BA OTIEAK | (°3deq ‘ee9) . 'O9 97329019 puy sey uUh7 "OQ #05 soUeINeT "OD SBD “SSUW Ter3Ue5 KORE 1441 Div. Exhibit No. 1 T96T Atwns9eq olo‘zt$ = €20°6 ¢ Le6"ET$ = 266°LEG—S59° LL § gog‘lz$ = TIN*SE$ gas “org TL9 uNOdoY 03 peSreyo qunouR UT esPeroUT STL°ST$ = oz E “TTS SeT'et$ €t2e"Ss$ Sle “Ste 0S6*°es$ = 2 16“ gng one *tz$ Tdg qunossy 0% ATTedzoutad peBreyo eoueteg 066°€ 006*2 O22 *€ 022 *2T 095 ‘TE 05S *2T OlT‘OT o€l*t suoT{ONpeg Teo] o9n'T 060‘T Oo€ *T OLL‘E ong’. 00g ‘€ 002 ‘€ 099‘T “H 3°V pue “qd Fa°y ‘ezpy dnoap 009*T oo€ *T 0l6 oot ‘1 007 ‘9T 00€ *g 005 ‘1 009 ‘T e3eueq Ay10do14 pue Amfuy LTTpog ®TFQom 4zny 009 o€n ong 00g *€ 009'9 002 £2 OOT‘T Puog Aqueizey 10480y 1048q O€T og OTT os€ 026 ost 02 OST eoueinsuy eeueg Teotsfyg eT Tqowyny sqonpeq SoL‘6T$ §=—_ ozz* Tg 60L‘T2$ c€1°lo$ = SEQ‘ONTS ~— 08108 *S9$ = 2065 010‘92$ G56 1¥eX Sede10A0) ozeredesg Jo 4605 pezeurys7 sno‘e $ = L6z*2 § 20°" $ tee"lt$ o29 le § emt’see = TOS ETS ~—etgd'N § Tdg qunosoy 04 ATTedTouTid peSreyo soueteg 6LE‘T "OL €ge*t 062 °S o€7°2T "Lg *2 s99*t 2eL*t SuOTZONpeg TeO, of£2 O9T Oo£ o9€ *T OlL‘€ oo€ *T $S2°T 0st “H ?°V pue *d Bd"y ‘ezpT dnouy 009 oot 00S 007 T oot’t 00S ‘T 006‘T 0SS e3eueq Ay1edo1y pue Amfut ATHPOg SETQqow4zny o€s 062 095 00S £2 007't - OST ool Puog AqQueireq 10380q 1078y 6T vas €z of O9T nL 09 22 ScouBinsul eFeueq Teopshyq eTTqow4yny ara :30npeg T0'S $ t90.E ¢ See‘S $ TIS‘2z¢ oS0%0S ¢ 9TO‘E2$ = OT ETS = NES *g ¢ “Zuedmy § Areduop ~~ dred Auedmo5 Aredm> 6 Aredup “Tuedup5 Kireduo5 7) a) 348TT 7) 3) a) sep sep : 3esnyoem = PoomION sep er0us AoTTRA wus] = soueMe] i e uojdmeuzt0N = qyON oFTssR Terqueg 4 uotzeied9 quepuedepuy spun TL9 Junosoy 04 SeBuey) soueinsuy Uy sesveroul Jo Aieumns Raisis 0Iulogia GNVPOND AGN ERA ON: PEE IN PRU SERN EL SET LE SFE OS era - - . = 7s @B-=tL Vt Peu ses eos a PA Poo ppt td_d oz s320c0dey4 IY WwW 1442 Div. Exhibit yo, NEW ENGLAND ELECTRIC SYSTEM Summary of Increases in Insurance Charges to Account 671 Under Independent and Combined Operation 8 Companies 8 Companies Independent Combined Operation Operation Cost of System Coverages Year 1958 $139,247 © $139, 2h7 Deduct: Automobile Physical Damage Insurance 02 02 Water Heater Warranty Bond 10,430 10,430 Automobile Bodily Injury and Property Damage 10,850 10,850 Group Life, A.D.& D. and A.& H. 8,825 8 825 Total Deductions 30,507 30,507 Balance charged principally to Account 671 $108, 7L0 $108, 740 Estimated Cost of Coverages Year 1958 $20,554 $293,751 Deducts Automobile Physical Damage Insurance 2,460 1, 300 Water Heater Warranty Bond 15770 10,30 Automobile Bodily Injury and Property Damage 39,170 36,170 Group Life, A.D.& D. and A.& H. 23,90 1,160 Total Deductions 81, 340 62,060 Balance charged principally to Account 671 $339, 21b $231,691 Increase in amount charged to Account 671 $230,474 $122,951 February 1961 1445 Seem al “SQ 885 qaeonusea "C3 89 poonzoy "OG BBQ ros 43204] "OF 2UBtT eH vozduoy320%} “OF SBD ABTA o7AE Ky {*3deq #955 *OD SyFAZSVTZ pur seg cudkt °OD 82 aSut sre | *OD SB SiJeenNYoOESsHY TrxqUED AUTOS ae Vato; Og puvy yeMoy $2809 [101487 SuTIUMODSY ztem0\SsND ZO voszazvdmoD § sotusdmc) wed gual (9) 309Tz — “XE Vvoperarq es J ) ) N g - 8 iy Zete 005 LIY ges Ziatg T 90°98 | “6 392 CHI FT OTS OGG GE a x euou eucu =—S euou 66° zzz 66° zIb*ze 06%"y ee Ty'T 009 *9% €£°S 00668 c€°% = O0E*EyT ert ‘ee %3T 16°€ 00%‘ TE €0°9 00% * ay zt2 000°ZT €z0'e N S ag 9f°T 008‘ yET 61°S g08'zI¢g £8°€ o09‘R8zE €12'86 x ze 9f°E = Gag *zZ E71 8%°£ O0T*90E ZI*y «= 00% got 226 ‘04 —Q ; a2, K 61 €8°9 ~=-_ oot ‘zz €°S Ss “Tit O° = OOH * wvT Tos*z¢e KR we v6°IS oop‘eT$ zez$ ooztae ¢ Bo°S$ 0909'S $ ~—s Sees ZL = (9) 3(3) (9) 2(3) (Q)3(P) = (®) = (p) (@)5(q) 2 (2) (3) (®) (P) (3) (9) “(@) 3Uss1ed ‘jénjy ied junoay - Sd Juncay Je) tei Juvowy SS it zi UN i wailed oly . {nv — wesseS 83505 1 ; Tez0L * 8561 2¥ex a1 Qi o Ad reall Bie 2 Div. Exhibit No, y "go61 203 “1° dG *SBBW O2 SUIMQSY [ENTLY :eomog /Z wes ‘X¥ saquepuodsey :e01n0s /T osee ze Sores 4098 ase GIS 6% 8150982 ve Szz TVIOL ste z 198 490 29°Z99° ZL 7s0'982 too. 09 SB9 2eENYoCK pe €€1z°z 07°96 «= ZE.L “004 9°7% 950‘ TST 9Sz ‘7 ‘OD STD POOMION S 69"'z Sp'08 + $9061 “Z 9'ze = Ok T*NZO'T ete "te ‘09 889 @30NS 43F0N a os 8090°Z 90°%8 = 919°ZZ9 8°6€ 920‘ ZOE 19s‘ “0D WIT seH uo yWdmEgyI0;, Tevez zs'y8 = 947 620°8 evs | SoM*ESE’E £66 '¥6 ‘op sep KatteA OF384H & A | (°34eq 889) S IZLE*Z LU°zZ «= BRT €08‘Z %° Of TOL‘ TSt'T Z78 ‘St OD 24239914 pus sep uut] - 5 9zB1'% 99°%8 39 SL ‘7S *Z 6°LE O92°SZT‘T TEU'TE "09 SBD aoUeIAET fm) 2960'2$ go'za$ 96 940°6"L = S 1°6€ Ove “LSE 821 ‘6 "OD SBD S2IIENYoRsseW TPIT qs? esp Bq (3) (2) (P) _@) (Ce ® T 8s/1€/Z PIos FR 22a «= '38ND req —/T_JuNoEy 2S f ia. 829m039ND fuedmo) ————“"SISADY BAT IBISdD DFaewmod SS 18 3 2} 280m0q {e20L [B20l_ _30 ‘OR “Sse avan ; ee SEONTATY GMV SHIVS SVS S1ISENOd TVIOL 20 IREMAIVIS ve “Xd oorstata SUIMVENOO SVD SHEN (8) IBOLT 6S6T 203 “naa ; a ae * i , . We ar See ead aire Ba : Saoeniin ES Ba PP ee Ka en ‘ 7 ah 7) ‘ - * a 1 | Ss9‘OtE - Bée*got't ses‘sve -epetzecte Ct ee _ 1445 DIVISION EXHIBIT NO. 3B_ Livy "eto't ‘zektese’e- zer'ece ¢ O22 *61E‘T Bes *6Le'T 9e8‘OTy “xy wotezata See 02 suinz94 0D 88D aQeSNqOEH ‘0D #vD pooazoN "02 SBD e10Gg§ 42204 "0D IUSTI seg uozdeNyI20n "OD sug 4a1TRA OT38AK (*3deq seg) — *OD 9F2390TR par sep unt] *OD S8BH SousIAN7] OD sep 6I30eNYOuSSEW 1e23089 Div. Exhibit Yo, + XHIBIT NO. 3C 1446 _ Ny) DIVISION oC Ste § $60€ °Z SHLI'? 902 °2 €1Z6°t SStz°2 Z0ES°Z 0626°T Z1g9"L $ Q=P 36°56 joss 65°21 B4°L6 Se‘got LL°%6 79°60 “27 UOTSTATC seumehapeseneal 760 8L7 tee 900 "882 ocs “Sos 928 °LEZ°€ 6ci’1z8 ZEL'T9E 6 Le *L99 ‘¢ ZEt‘SL0°E SOT‘ tzo'T$ *SSé6Lt sc *h °d °C *SSRR OS ausngey {onuay :@ommos {@ vss ° ou Zetety Ot S9L"SEZ Tm 0ST) 8°1S orn ZEt 06%‘ t°Z% S62 °S6E*t etree 6°15 1S *9T% €20‘8 9°ty e6c* th. €L2°86 Z°0? 919772‘ 86°04 9°8% L RYU MES ST 108 “ZE €°te9 git *s $6 °6 tz 4) As Were oxentien T¥IOL xq squepuodseg i9o3ndS /t {BIO}, "OD BUD 3IOSENYoOCH “og etd ReenzeN "OD euD OOS WAN "OD 3UBTT Se wozRcueqzICN 09 BvD Aoq{tA oF3SAN (adc ced) *OD FTIIIS{Z pus sD uuh] Co} SD 0oUeIAS] "aD GHD SIBSENGoOVserR Yvs3UeD Kas dod 1447 DIVISION EXHIBIT NO. Div. Exhibit No. 3D 3D $az0 2S 9451°S 6z80°e S9ic*? 1S25°T L£z0T’2 90¢z'°2 PTOS JON 29g “¥E vUoTeTaAtTa SER EB 69° POTS Cam 99°ScT €2°601 ZL °STT T°CoI L126 €6 LOT eS *OzT$ BrP (2) "Jeng 13g laoreet _ £60 CEL 925 926 ice eso0'Ses et ‘- .- 296 S59 ¢& 016° 125 €L2°8H2 ‘Ot LE7°TLL°¢ TT6‘ OS ‘E TZ1°ZLZT‘1 $ (P) uno “ets f€Le Oat ct 98> 86. 996° 68E 9°99 190‘ 187 €°67 ©6929 8E9°T 9°es L£92°99% 16% €1z*9ie'y S‘Ty €04'869"T $°€9 0%‘Sg0°2 9°42 £76°7S2 Giq a “IEND/FH FON 6S61 20F “Hdd “Set OF SuINQor TeNMuUyY +soz2NO0S Soles 885) TIIOL 119° 9te 1290's 9S9 ‘ty Z7Sz CE L96‘L Ofe *66. 816 ‘Ov Ln8°z¢ 922 °6 (®) 6S/Te/et S1EM03 END TRQ0L 6S6T 4A88K SsenusAsy puv servs 8BD) 1[B3IGL JO yusMs{E3S soyuvdmon sed STEN (8) 2q8t2 Ee ne eee 18305 "OQ SUD BIeESNYyooN "OD SBD poomzoN "OQ SPQ Bsous YIAON "OD 2YBtT svg vozdapyIOCN "09 GBD Kot TVA ITISAN Juemjiedeg s¥5) "O09 2¥aQDeTS puw svg wutT "OD SBD SOUAINET "Op SBD SIIosHYySESSEW TeIAQUTD Wy =A aoperzara SLIZSNHOVSSVH NI SHINWaNOO svo *2v0X oy2 Suzanp peares siswojsND Jo 2zequNM 03 UOT BTe2 Uy} pues aeed ye pej10dex szomojen> yo 2zequnu 11 EMS ATT eMI0NGe 02 enp e{qvzedmoo Jou seamBzz xeMOQEND 19zg fF *(uO;3tPa 4241, - setuedmoD 66) uooTrsMy 30 A10}9017q@ B,UMOAg :892N0g) 0961 I}IUN ses [vaNqeU WBTwr3s 03 AXBANOD JOU PTP BED uC {sOg /2 Div. Exhibit No. hA *suoyjvzedo 97139973 puv ee3 pezet[t3z3e auzof zo @ONBI9q 2U9M9IVIg STGI WOIS Papmy{ Ke e1eRM ‘OE °xXZ SQuspuodsey uy pepntov; ‘*0D °37 °1Tg pue se5 Banqyo3t4 pure ‘°0D ‘31 ‘Pe pus eed pr0zpeg AeN ‘°OD Bed eBpt2zqueD /I SS6T 203 “N*d'd “eeu OQ sumNQeYyY [eNUTY :39x1NOg, naninatehieeiietmetmeeee te S writs Gl Sei$ © BEOELT 19S" TOL Beso Hoe ("809 4) Tvz0L oO : ; . rar — SSTesstet — . ‘ Zz L106°1$ SC°ZiTS = O18 GLB" HES 8°8S LIE £87 8% Z0L OLE ("80D Z) ‘SETH 18205 c, €S29°T 96 °O0LZ 208° Li9"T L°19T Lit "z99 9S9°S /€ °09 sed Avg spavzzng mm S616°tS €7°601$ 800209 *EEs$ o°“s 00Z * 10%" LT 89z “SOE /Z *©3 SQ Yo 00g z = SUOTIVUTWT TT *F S862 1$ T9°EZ7$ = BHZ™ESO'OLS £°89 tel 682 cy L0€“ST9 (*809 6) TV1LOL 9199 "7 26° 9ST 696 “1S8°ZT 9° O0OT 116°828"Z 076 LL "OD 3q371 e¥D 103690204 S 4g08°1 L4O°TET =: 96 *E1L‘B 6°22 T£2‘sze‘y 6L1‘99 "OD WTI 88D pletzBay4dg B Clot 91° SEt s80‘sco'y €° 101 £59°6S6‘Z 902 ‘6Z "OD 8B TT3A0} > 9692°T $0°S%1 Z2€8°688‘Z 8°zs 009 ‘8E9‘T 982 ‘61 “OD 88D [1 }YIeARH Q 6L0L°1 €7°€Z1 SS ‘i9z‘Y €°zZ 959 ‘964 ‘Z 91S ‘¥E / "OD SBD z94TY 112d €S19°1 96°62 Z08‘LLy‘t £°19T LT1 ‘ze S'S ‘OD 68D Avg eprezzng 7L91'°Z €z°SOT €S2‘199‘¢ 9°8y E% ‘77S ‘Zz SS6‘IS "OD SBD uoIUNB]L uo34007g S6iG'I €%°60T 800°Z0% ‘EE 0°“S 002 “107° ZT 87z ‘SOE "OD 8¥D n0380g 9S0L°1$ SE°SIIS 9éz‘7S6‘z $ 9°69 RZI‘*ZEL‘T €96‘%Z "OD SBD F1yYSRIEg syy G>Pp Bsp esq (3) (2) (Pp) >) (9) (8) PICS JON Jed 8¢/1e7z1 GG jO Gols Woly onUdADY "[e20L S2TeS eB5 [8320] | @x9mM03BND Ausdmog jo owey JO “OM [8201 s8S6T 280, : SSQNHARE GNV STIVS IvV1LOL 40 INENALVIS autinialiaiie /t COG °=a @, 3UePpucdssy ut peprt>cur) Wh =H aopseTtata SLIQZSNHOVSSVH NI SaINVaNWOO sv2 Tvenrwea (6) SNie a 2 ena MAE Pisin eh eR re eed EOS MOT RS re pies Ee ee ee Re rere en . . . . _ 1450 DIVISION EXHIBIT NO. 4B Div. Bxhibit to, yf S27.38 9142.10 5 1. Ges and El. Lt. Co., included $ 114.37 277,12 $35,124, 821 —b 110,13) aaa*ee#s @ & Ex. 90, were excluded fren this etatemant because of joint affiliated ges 3. customer figures mot comperable due to abnormally emall suuber of customers reported , Light Co. ridge Gas Co., Rew Bedford Gas and Bd. Lt. Go., and Fitchburg 3/ Per Per custGns in relation to ausber ef customers served during the yoar- of American Gas Companies -- 74th E4éition). field Gas Light Co. 5 Worcester Gas 2/ poston Gae did not convert to straight metural gss util 1960. (Source: * Source: Annual Returus to Mass. D.P.U. for 1959. Total Elim. (2 Cos.) Total (7 Cos.) ‘Total (9 Cos.) \ Biltminations: 5 Boston Gss Co. 2/ | —- Busserde Bey Ges Co. ‘Lewell Gas Co. . Springf “4 Div. Exhibit hc 1451 DIVISION EXHIBIT NO. 40 *xzef ey3 Sapmp peazes oxemozen> Jo azequnu 03 UOTIVISX UT pus aeek e pezsodes s2zewojsns JO aequnU {{wEe AT{UMI0UgE 02 snp SIQVIEcwOD Jou DeINBTZ asmozsn> 313d /E *(SOF3 pa UIT, -- Sezucdmo) eed ceoTAcUY jo Pea A£2039027q 8,UM0ZG + e02N0s) °O9ET 1F3uM 4eS Tengen 3G8te258 07 3204000 30U PeP GYD uorsog /Z ; | -gnozaezodo IF233019 pus ee8 peaeytt332 Wwyof yo eensosq yueuwI"3Z9 Ty BOI POIVUFHT[S OOM ‘OE “XY $,3UepUCdBsy ut ¥ PEPRTODE ‘OD “IT “PE pUS sud Banqyrayz puw ‘-oD °31 “px pur eed paozpeg Aa *°09 995 ofpracees {Tt se "S61 203 “A°d'A “See 02 yUINZsy TeNDUY isomnos «x S euinieeeeemeenennll 9386°T § ez cers «= Tee “Hea TES T°ss AivO2T' OT ~ Teo %7ez ("s09 gd TRIO, SiGe $ 62°68 8 Sesteiivecs S°% 825 6166 926*68Z. £809 2) ‘META TeIOL se9 et CET «= Tb BLE 2°29 825 “S62 3ui77 =| /E 0D Bem Sen spzezzng Sf1s‘2 2o‘Se $ LODE‘ ¥Z$ 0° %€ 000° 789 ‘6 822 “we {2 °° Sep uwoqsog s euOzZeULwWT 1A Peete $ $646 S$ SIT O9S "OSS Bey $00 901 Sz 190 Z2¢ ("809 6) t920) L$ 7 Sie hi ere 049 8 £°€9 1S$°2z9 1t0€Z "OD 34877 SUD 263805207 ZIT6°T 9$°OTI £90°0S6'9 9°45 9L¢‘L19'€ £08 ‘z9 ‘OD 343F1 80D proyzBuz3zdg €169°Y LE°St1 Tl Sere 9°49 879 “Ese ‘Tt ZI¥ ‘Lz "OD su 1 {2m0'7] yOC6 "x To°det €6€ ‘€29‘°Z 6°d 009 ‘ZS¢‘T B41 61 ‘OD SUD (i 7ytCAUK 3L66°X St°Zel COI ‘ovy‘e 9°€S 6Sz‘SZL‘T O91 ‘Ze ‘OD 88D ICATA ITE Alva 2 02 °€9T $8 “vis z°z9 RZS *C6Z RL’ > "OD sed Aag sparezng cere 2 62°88 039 “Ee” y O° LE $70 £78 ‘1 SL8 bY ‘03 st Dome uoryoo:2 S€1S “Zz t$°ss EL ‘OE ‘vz On” 000 ‘769 ‘6 829 ‘987 “09 8B uoIs0g 76861 § SE°%6 $ © C98 ‘Sbi°Z 6 6°44 SIE ‘90T'T €Lz°Ez ‘OD SRD ortysyzey ou ee ; Pep #-4q (7) (®) (P) (2) = sae (#) PICS. 32W tea "jong 304 ~ juncEy 8S/1¢/z1 Kuedac) 30 san Cnusaey Bupioredo STIJsuCg 6 2eMOIEND 2}38ea0g je °oN % 8C6{ 2005 SOnNUuvaay pus Seles sud 2T38sewWogG T@320L JO 3UusaweITIS /t (06 “Xa 8, 2uspucdsey ut pepn sur) SctwW ut cetuedmoD svD [wanzeN (6) ®UTN oy “xa aotetara awed aun Sutarlp peases exemozens zo z0qunn 03 wesaetes ST poe see*% es UE SS a RN lO — —_= | a a nt i ee A we en ee ee a c} . ; Ue tek ee -(uctatpa Gavt - setuvdeoD sed j = avotszemy yo £103502150 @,umo2g :@92S) “0961 T¥3unr, svB {eAangeu qySTeszqs O02 3IBAUCD 30U PIP sep uoqscg /z¢ » , 2 *guo}y aeszedo | oya}2eT2@ pu svB peIeVTT{yZze quyof jo esneseq quews{EIs SFY GOI; peqeuTwT{e 22am ‘OG “Xd gjuepucdssy uy pepnyout ‘°OD °37 “Ta pue sed Banqyoatd puy '°OD °31 “pd pue sed paozped nen $09 svD aBptaqueD /1 zi 6661 1203 -N’d'd *S8BW C2 sjzodey Tenuuy :802N0S * $606 15 9 S1tS 692°999° EES 9°09 626‘ O€9'LT €yt'26z (°809 £) 18201 : 610% 25 $216 9 Eee “009° 9Z$ 0° 8€ 869° 72011 LOS * 162 (‘802 7) “META TPI0L 7 9969 °7 86° TAT 68% 726 6°89 869° 69€ res /€ "0D BBO Avg sprezzng CS 986€ °7$ 9L’68 $ 68‘ LL9‘SzS 9° LE 90z ‘SOL ‘OT fy1‘9e7 & {/Z *OD 3v9 vwOsOF >. :SUOTIVUTOTTT - =) 6660 °75 97 e0TS ZS1°292098 2°69 029°SOL 82 059° €8S (°802 6) 10201 a Tete ‘1 8S 8zt 661° SS9'6 2°OL 4969002 'S Les €L "0D 3Y8TT BBD 12388210! me a 7676 °1 ZL‘°91T ZEm‘OL7‘L $°09 g0€ ‘892 ‘€ 16Z ‘29 oD 2481 8e9 pretzaurads - uss9"l 69°71 £9L‘sec'€ o°eL 100‘ 1S0'z 680‘ 82 ‘og BUD TT2M0T Z L0€6't 16°12 e1L' 1492 1°€9 Tye ‘eset $16‘ 12 "0D $89 TTFY29ATH = $656 "1 TI9Tt 18z‘€99'€ z°9S €69*698'T wOT'ze OD SBD AFA ITPA i 9964°Z 86° 1LT 68% ‘776 6°89 | 86%°69£ 79t‘S ‘0D svD Avy spavzzng c £692°2 S6°ES 6£9‘ 108°% o° 14 £6y°Stt*Z gor‘ is ‘oD SB) vo jUNeE] uoZy4I019 A 9R6£°Z 42°68 768° L29°S2 ®’ LE 007 SOL‘ 91 €71 ‘987 ‘oD str) ao 380"g. 26€6°1S Lz7°90I$ LEL‘BOn*Z $ 8°€S ZEU‘ZHe*T Tov ez ‘OD SBD arTysyree OGL q*p we +p eq Pos ae ae 4) (p>) (2) ¢q) (®) P1I0S JON 30d "en 10d qunody 6S/TE/Z1 © Auedwo) jO owen : @nusasy Susy zvsedQ 2}3see00 $198028N) : 2338em00 yO “ON senuessy put seTUS #05 37280000 TwqOL FO 2USNEINIS epunieeg Uy pepnical) ~.. - i SVD THANIEH (6). SOUTH _OoSsyorseTSS Las DIVISION EXHIBIT NO. 5 NWS DUIGaST Div. Exhibit No. 5 FEDERAL POWER COMMISSION yOL. XLIX - No. 27 WASHINGTON Thursday, February 9, 1961 ~ eee + = 40 NEW NEW ENGLAND UTILITIES ”, AN 'IOUEFIED NATURAL GAS STORAGE PROJECT: (Journal of Commerce, February 7) -- By Lewis Brig- ham -- Forty gas utility firms in four New England States are pushing toward the construc - tion of a natural gas liquefaction plant to help meet the area's chronic fuel price problem. Talked about for years, the formation of the New England Gas Pooling group last year is aimed at developing an underground refrigerated supply of liquefied methane during the low demand summer months to help offset heavy line withdrawals during the peak winter demand months. Impetus for the plan really originated three years ago when in the middle of the winter heating season the main line for one of the two natural gas transmission lines serving New England broke down. Additional impetus came from the dramatic success scored by the tanker, Methane Pioneer, which, outfitted with special aluminum and balsa wood tanks to hold the liquid methane at its required 258 degrees below zero during shipment, brought seven cargos of southwestern U. S. methane to the London, England, gas system. Future developments for the Methane Pioneer plan of tankering liquefied methane await de- cision from the British Gas Council, but in the meantime, the New England gas companies are about to move themselves. At the same time, the American Gas Association has been con- ducting studies which will have a definite bearing on the New England program, even though carried out separately. The AGA research has been aimed at developing a more economic form of storing the methane which must be brought down to 260 degrees below zero in order to be kept ina liquid state. ''Cyrogenic, '' or underground, storage is the key to methane's commercial usage in gas utility operations, according to the AGA, which now says the best storage prospect is a concrete vault as opposed to the prohibitively expensive aluminum and balsa wood design used on the Methane Pioneer for its seven voyages to ‘ondon. In fact the AGA hopes to erect a pilot storage unit this fall at a site yet to be determined using reinforced concrete and insulated walls. This will be a small 1,000-barrel unit for experimen- tal purposes, primarily. While the details of the New England plan with regard to storing the liquefied methane have not been made clear as yet, chances are it will embody the AGA concrete approach to an extent. This is particularly true inasmuch as New England lacks depleted gas fields where product can be stored as is the . case in the southwest producing areas. Best bets for the location of both the gas lique - faction plant and storage area though is said by area utility observers to be somewhere near Worcester, Mass. which is central to the four states involved--Connecticut, Rhode Island, New Hampshire and Massachusetts. For the New England gas customers, as well as the firms themselves, the development could mean a real boom. Chronically beset with energy price problems during the winter months, the area is highly vulnerable to peak energy prices and line breakdowns. The New England utilities would, of course, purchase the so-called "valley" gas, that is, the product available to the utilities in the summer when it is at its most plentiful and offered at its best rates. On this basis, the engineering firm of Stone and Webster is un- derstood to have told the New England group that this "valley" gas would be available 15¢ per thousand cubic feet below the price in- dicated in earlier plans for Venezuela liquefied methane which could be tankered in during - the winter to meet the season's peak demands. The transmission lines are expected to be enthusiastic over such an operation which would aid in leveling out the "peaks and valleys" of their seasonal demand pattern. POWER PLANT AUTOMATION BREAKTHROUGH EXPECTED THIS YEAR: (New York Times, February 5) -- By Gene Smith -- This is supposed to be the year for the automated electric power plant. Both engineers and manufacturers of automation equipment that controls the varioys operations of a modern power plant feel that the actual breakthrough will come this year, either in Louisiana or on the Pacific Coast. The Louisiana installation should have the first chance. It is the Little Gypsy plant of the Louisiana Power and Light Company, an operating subsidiary of the Middle South Utilities System. This parent company already has logged successful oper - ations in certain phases of the automation field. Only last week at the winter meeting of the American Institute of Electrical Engi- neers, Gerhard L. Hollander said that a process control computer in Louisiana Power's Sterlington station had run almost continuously (Continued on next page) DC-F ‘ day and night for six months in guiding a power plant's operations, It was out of use, for maintenance and related reasons, less than one percent of the time during this half-year test period, A spokesman for Middle South said that the Sterlington computer's performance actually had been "99. 99 percent perfect. = The computer was supplied by Daystrom, Inc., for the 225, 000-kilowatt unit. And Middle South also controls its three-state network--Arkansas, Louisiana and Mississippi-- from a central dispatching office at Pine Bluff, Ark. The heart of this operation is a generation computer designed by Leeds & Northrup Com- pany. The California chance will come later this year at the Southern California Edison Com- pany's Huntington Beach generating station. The General Electric Company's computer de- partment at Phoenix, Ariz., is supplying the computer equipment for what it described as “the world's most advanced computer --automated steam-electric power generating units." This computer -controlled system will start and stop the generating equipment, provide data -logging and alarm functions, make continuous performance calculations and maintain constant supervision of the generating units. This will mean continuous scanning to monitor conditions such as fuel and water flow, steam temperatures and pressures and electrical values. Scanning must be done at rates up to 300 points a second, which is said to be the equivalent of digesting the contents of a 300-page book in five minutes. Each hour, 50 critical quantities that are needed for permanent records of operating conditions will be logged in a digital code and prinfed on an automatic typewriter in the form . of common engineering terms, The new system is even equipped to handle automatically hot and cold starting, normal and emergency shut- downs and complete supervision of the boiler - turbine-generator systems. Utilities have long been users of computers for such relatively simple functions as billing and engineering department calculations and studies, as well as for automatic dispatching equipment to call on various power stations and units for best per - formance under all conditions, Industry spokes - men estimate 22 automation contracts have been signed for delivery of power -generating units linked with computers through 1964. Ebasco, the large consulting and engineering concern, expects to purchase at least six auto- mation systems for power stations within six months. Thompson-Ramo-Wooldridge, Inc., reportedly has at least 18 propositions outstanding with consulting engineers and utilities for steam plant automation equipment. The original-reason for utilities to buy such equipment was simply the question of whether 1454 it was cheaper to spond dollars for equipment or hire more workers. L. F. Kennedy, man- ager of G, E, 's system protection and control engineering operation, explained that today, as the processes become more and more com- plex and larger amounts are invested in equip- ment, man is no longer able to absorb all that is going on and to react fast enough to control efficient operations. ''An operator today would - . have to have a fantastic memory and a pair of roller skates to duplicate the ability of a com- puter to effectively analyze 1,200 bite of information every 15 seconds, as will be done with future power stations, '' he said. Mr, Kennedy predicted that before 1970 the power - industry would see all unite of 250, 000 kilo- watts and larger digitally-controlled. Smaller units will follow soon after. W. J. McLachlan, manager of G, E, 's electric utility systems engineering operation, explained that a 500, 000- kilowatt steam station could realize capitalized savings of about $1, 250, 000 to $2, 750, 000 through complete automation. A spokesman for Leeds & Northrup estimated that a digital computer and minimum associated gear would cost about $250, 000 if used for computation only. If control gear is added, the cost may be "two, three or ten times" as great depending on the end use, he said. Nevertheless, the company finds that about 20 percent of its over-all business comes from power plant instruments, controls and computers and that volume in this area is improving. LAKE SUPERIOR DISTRICT POWER'S $3 MILLION BONDS ARE AWARDED: (Wall Street Journal, February 8) -- Chicago -- Lake Superior District Power Company awarded its $3 million of single-A rated first mortgage bonds to Salomon Bros. & Hutzler and Baxter & Co. The successful bid was 99.577 fora 4-5/8 percent coupon, That gave the utility, based in Ashland, Wis., an annual net interest cost of about 4.65 percent. Salomon Bros. and Baxter & Co, planned to release the bonds for general distribution, following compliance with Securities and Exchange Commission require- ments, at 100. 404, to yield 4.60 percent to maturity on February 1, 1991. Preoffering indications of retail interest in the issue at that price and yield were described as "from fair to good. "' The new 4-5/8s will be optionally redeemable by the utility at prices ranging from 105.03 down to par. Other bids came from Halsey, Stuart & Co., Inc., 99. 414 for a 4-5/8 percent coupon; Kidder, Peabody & Co. and White, Weld & Co,, jointly, 99.31 for a 4-3/4 percent coupon, and Robert W. Baird & Co., Inc., 99. 949 for a 4-7/8 percent coupon. Lake Superior District Power will put the proceeds into its construction program. SLPS LER EG LNLON LTS EI ROO I I n AEE MOS RPE IS TC GMO EC sir 1455 In the United States Court of Appeals for the First Circuit No. 6332 New ENGLAND ELecrric System Et AL., PETITIONERS, Vv. SECURITIES AND ExcHANGE COMMISSION, RESPONDENT ON PETITION FOR REVIEW OF AN ORDER OF THE SECURITIES AND EXCHANGE COMMISSION Before Aupricu, Chief Judge, Sweeney, Chief Judge, and Wyzansk1, District Judge John R. Quarles, with whom Richard B. Dunn, Richard W. Southgate, John J. Glessner, III, and Ropes & Gray were on brief, for petitioners. David Ferber, Solicitor, with whom Philip A. Loomis, Jr., General Counsel, Ellwood L. Englander, Assistant General Counsel, Martin D. Newman, Attorney, and Solomon Freed- man, Director, Division of Corporate Regulation, Securities and Exchange Commission, were on brief, for respondent, OPINION OF THE CouRT June 4, 1965 AvprIcH, Chief Judge. This is a petition seeking to review and set aside a divestment order of the Securities and Ex- change Commission pursuant to section 11(b)(1) of the Public Utility Holding Company Act of 1935, 15 U.S.C. § 79k(b) (1),. requiring the petitioner, New England Electric System (NEES) to dispose of its gas utility properties by terminating its rela- tionship with its eight subsidiary gas companies. The 1456 ultimate question in the case, which the Commission. resolved against NEES, was whether divestiture would cause the loss of “substantial economies” within the meaning, of the cited section. (1455) 0 SPEC RADARS 1456 A Briefly, NEES is a registered holding company controlling, at the time of the hearing, fourteen electric utility subsidiaries and eight gas subsidiaries, with some 824,000 retail electric customers in the states of New Hampshire, Massachusetts, Rhode Island and Connecticut, and some 237,000 retail gas customers in Massachusetts. Seventy-eight percent of its gas customers are also served by the electric companies. Except for certain peaks and emergencies the gas distributed is natural gas supplied by pipe line companies from the southern United States. The gas companies have separate offices and manage- ment, but their top officers are responsible to the top officials of NEES. There was a lengthy hearing before an examiner at which NEES sought to show that the cost of divestment to the electric system would be $804,000 annually, and to the gas system, if operated as a single unit after severance, $1,098,- 000.1 The Commission held, inter alia, that the financial effect upon the electric system was not a relevant inquiry, but that if it was it was not significant. This we do not reach. It j also held, which we do reach, that the claimed financial con- sequences to the gas system were not substantial as it con- : strued the statute, but that if they were they had not been ‘ adequately proven. 4 Basic to its decision, as the Commission recognized at the % outset of its opinion, is the meaning of the Act and the stand- ards which it imposed. Briefly, section 11(b)(1) required divestiture unless NEES could satisfy the provisos 1457 or exceptions? contained in sub-paragraphs, or clauses, (A), (B) and (C). Clauses (B) and (C) were admit- tedly met. Clause (A) reads as follows: ~ “(A) Each of such additional systems cannot be op- erated as an independent system without the loss of sub- stantial economies which can be secured by the retention of control by such holding company of such system;” Before considering whether the Commission’s interpretation of this clause was correct we must determine what its inter- ‘NEES’ actual figure was $1,165,000, but the Commission reduced this by $67,000 as a result of a “revised basis of payments” authorized by it. NEDS does riot presently dispute this adjustment, bat potnts out that the reverse adjustment must be made to the estimated electric system losses. *The Commission uses the word “exceptions,” and criticizes N EES’ word “provisos.” NEES’ distinction, as we read it, was in response to a heavy burden of proof which the Commission sought to attach to exceptions. See fn. 4, infra. SBN REO LOS IEE aa il rycen ware ee 1457 pretation was. At the beginning of its opinion the Commission stated that to prevent divestiture NEES must show, “that the additional systems were integrated in nature and ‘were so small that they were incapable of inde- pendent economic operation’ and had a ‘real economic need’ for management together with the principal sys- tem. Congress was aware th [Text truncated at 120,000 characters. The full text is on the page linked above.] --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386411_0257%3A03. Public record. Not legal advice.