Item 1. Business Item 2. Properties Item 3. Legal Proceedings Item 4. Submission of Matters to a Vote of Security Holders
PART II
Item 5. Market for Registrant's Common Stock and Related Stockholder Matters Item 6. Selected Financial Data Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations Item 8. Financial Statements and Supplementary Data Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
PART III
Item 10. Directors and Executive Officers of the Registrant Item 11. Executive Compensation Item 12. Security Ownership of Certain Beneficial Owners and Management Item 13. Certain Relationships and Related Transactions
PART IV
Item 14. Exhibits, Financial Statement Schedules, and Reports on Form 8-K
PART I
Item 1. Business
THE COMPANY
Colonial Gas Company ("Colonial" or the "Company"), a Massachusetts corporation formed in 1849, is primarily a regulated natural gas distribution utility. The Company serves 132,000 utility customers in 24 municipalities located northwest of Boston and on Cape Cod. Through its wholly-owned energy trucking subsidiary, Transgas Inc. ("Transgas"), the Company also provides over-the-road transportation of liquefied natural gas ("LNG"), propane and other commodities.
The Company's corporate office is located at 40 Market Street, Lowell, Massachusetts 01852. The telephone number is (508) 458-3171.
The Company's combined natural gas distribution service areas in the Merrimack Valley region northwest of Boston and on Cape Cod cover approximately 622 square miles with a year-round population of approximately 500,000, which increases by approximately 350,000 during the summer tourist season on Cape Cod. The Company is serving approximately 48% of potential customers in its service areas. Of its 132,000 customers, approximately 90% are residential accounts. The Company added 4,223 firm customers in 1993. The Company's growth during the 1980's had been based primarily on new residential and commercial construction in its service areas. More recently, as new construction in the region has slowed from previous levels, the Company has actively sought new customers to convert to gas from other energy sources for their existing homes and businesses. Of the total number of new customers in 1993, 57% converted from other fuels.
The Company's 1993 consolidated operating revenues from gas sales were derived 64% from residential customers, 32% from commercial and firm industrial customers, 2% from interruptible industrial customers and 1% from transportation customers. For the year 1993, the Company sold 19,965 MMcf of gas, of which 12,889 MMcf was sold in the Merrimack Valley area and 7,076 MMcf in the Cape Cod area. At December 31, 1993, 90% of the Company's residential customers used gas as their source of heating fuel. The demand for the products and services furnished by the Company is to a great extent seasonal, being heaviest in the colder months.
At December 31, 1993, the Company had 464 full-time and 51 part-time gas employees. Of those employees, 97 are covered by a collective bargaining agreement with the United Steelworkers of America which expires in April 1996 and 82 are covered by a separate collective bargaining agreement with the United Steelworkers of America which expires in February 1995. In addition, the Company has 11 full-time and 3 part-time appliance sales employees and Transgas employs 86 full-time employees. Of those Transgas employees, 59 are covered by a collective bargaining agreement with the International Brotherhood of Teamsters, which expires in June 1996.
GAS SUPPLY
As of November 1, 1993, all interstate pipelines were required to implement restructuring programs pursuant to Order 636 of the Federal Energy Regulatory Commission ("FERC"). See "Regulatory Matters - Federal Regulation" below. Intended to create a more competitive environment in the natural gas industry, Order 636 required the pipelines to unbundle/separate the three components of their former city gate sales services: supply, transportation and storage. Under this restructuring program local distribution companies ("LDCs") such as the Company have been assigned their pro-rata share of the transportation and storage entitlements which were inherent in the discontinued sales service. Further, LDCs now negotiate directly with suppliers for their supply requirements and must effectively manage their transportation and storage in conjunction with those supplies. In general, the Company pays negotiated rates for gas supplies and tariffed rates (approved by FERC) for transportation and storage services.
The Company has determined that its supply requirements should be met through a combination of firm purchases, spot purchases, supply from underground storage, liquefied natural gas ("LNG") and propane.
The following table shows the Company's sources of firm supply to meet its gas requirements and the actual components of gas sendout for each of the last three years:
1993 1992 1991 MMcf(a) % MMcf(a) % MMcf(a) % Firm Gas Sources (b) Supply purchase contracts (c) 19,731 74 - - - - Pipeline contracts - - 24,933 81 24,933 81 LNG contracts 3,450 13 3,125 10 3,125 10 Storage inventory at January 1(d) 3,417 13 2,786 9 2,625 9 Total sources 26,598 100 30,844 100 30,683 100
Gas Sendout Pipeline: Firm gas supply 2,620 13 - - - - Pipeline contracts (e) 7,184 35 8,292 40 5,053 27 Spot purchases 5,178 26 8,341 40 9,604 51 Supplemental: Underground storage 3,501 17 2,666 13 3,018 16 LNG-as liquid 907 4 564 2 524 3 LNG-as vapor 915 5 1,095 5 462 3 Propane-air 8 - 9 - 13 -
Total sendout 20,313 100 20,967 100 18,674 100
Ratio of firm sources to sendout 1.63 (f) 1.47 1.64
(a) The term "MMcf" means one million cubic feet of vapor or vapor equivalent.
(b) 1993 reflects the Company's portfolio of firm sources subsequent to the pipeline unbundling mandated by FERC Order 636, calculated on an annualized basis.
(c) The Company's total firm pipeline transportation capacity for 1993 following the unbundling mandated by FERC Order 636 was 26,239 MMcf. The Company's firm supply purchase contracts are structured to enable the Company to purchase volumes equivalent to its total firm pipeline capacity during the winter or peak season, but less than total firm pipeline capacity during the off-peak season when customer demand is less. Accordingly, on an annualized basis, the total supply purchase contract volume shown is less than total firm transportation capacity.
(d) The Company's storage inventory is drawn down and refilled throughout the year depending upon the availability and price of gas sources and upon the requirements of the Company's customers. The Company's current level of underground storage inventory capacity is 4,309 MMcf.
(e) 1993 reflects pipeline contracts prior to implementation of FERC Order 636.
(f) The Company's ratio of firm sources to sendout for 1993 was determined by adding available transportation capacity (26,239 MMcf) to LNG contracts (3,450 MMcf) and storage inventory (3,417 MMcf), and then dividing by total sendout.
Based upon presently available information concerning its firm contracts for transportation, storage and supply, and other supplemental sources, the Company expects to be able to meet the gas requirements of its firm customers for the foreseeable future. Additional information concerning the Company's firm sources of gas transportation, storage and supply for its two service territories is set forth below.
Merrimack Valley Service Area Sources
The Merrimack Valley service area is directly served by the Tennessee Gas Pipeline Company ("Tennessee"). The Company has three separate firm transportation contracts with Tennessee, and two storage contracts with accompanying transportation contracts.
One of the firm transportation service contracts with Tennessee is for approximately 25,196 Mcf per day and will be in effect until November 1, 2000 and year to year thereafter unless terminated upon twelve months prior written notice. The three firm supply contracts which utilize this transportation service provide various levels of supply service up to a total of 25,196 Mcf per day during the peak period, and have been filed with the Massachusetts Department of Public Utilities ("DPU") for its approval. A ruling is expected shortly. See "Regulatory Matters - Federal Regulation" below.
The second firm transportation service contract with Tennessee is for approximately 17,300 Mcf per day and will be in effect until April 1, 2013 and year to year thereafter unless terminated upon twelve months prior written notice. To meet its own peak season supply requirements, the Company has a firm supply contract for the months of November through March which provides the entire volume associated with this transportation contract. The firm supply contract will be in effect until October 31, 2000 and year to year thereafter unless terminated with twelve months prior written notice. During the off-peak season the Company expects to utilize its capacity entitlements under this transportation contract to transport gas on behalf of an 84 MW cogeneration facility which is independently owned.
The third firm transportation service contract with Tennessee is utilized in conjunction with the Iroquois Pipeline System ("Iroquois"). The Company has contracted for approximately 2,000 Mcf per day of capacity on Iroquois and Tennessee for delivery of the Company's Canadian supplies to the Merrimack Valley service area. These transportation contracts are in effect until November 1, 2011 and continue year to year thereafter unless terminated by twelve months prior written notice.
In addition, contingent upon all necessary regulatory approvals, the Company has contracted for approximately 4,000 Mcf of additional Canadian supply, along with associated capacity on Iroquois and Tennessee. These volumes would be deliverable to either the Merrimack Valley or Cape Cod service areas on a firm basis.
The Company has underground storage capacity of approximately 2,000,000 Mcf of natural gas pursuant to a contract with Penn-York Energy Corporation. This storage contract is for service to the Merrimack Valley service area and continues until March 31, 1995 and from year to year thereafter unless terminated upon twelve months prior written notice. The gas is transported from storage to the Merrimack Valley service area by Tennessee pursuant to a firm transportation contract for up to approximately 15,691 Mcf per day which continues until March 31, 1995 and from year to year thereafter unless terminated upon twelve months prior written notice.
The Company has another underground gas storage service pursuant to separate storage and transportation contracts with Tennessee. The storage contract provides capacity of approximately 1,053,898 Mcf of natural gas, and the related transportation contract is for up to approximately 7,504 Mcf per day. These contracts continue until November 1, 2000 and from year to year thereafter unless terminated upon twelve months prior written notice.
To serve the Merrimack Valley service area, the Company owns an LNG facility, located in Tewksbury, Massachusetts, which has liquefaction capacity of approximately 5,000 Mcf of natural gas per day. LNG can also be delivered by truck for injection into this facility which has a total storage capacity of approximately 1,000,000 Mcf. In addition, the facility has the capability of vaporizing and injecting back into the distribution system approximately 60,000 Mcf per day.
The Company has also contracted for the purchase of LNG that can be available to both the Merrimack Valley and Cape Cod service areas. This contract provides for approximately 150,000 Mcf in the 1993-94 winter season with an expiration date of October 31, 1994. The Company has an option to increase the quantity of natural gas available under this contract by as much as one-third during the winter season. In addition, the Company has a separate contract for the liquefaction of approximately 300,000 Mcf of LNG each year through October 31, 1996.
The Company also owns facilities for the storage of approximately 158,000 Mcf natural gas equivalent of propane which can be vaporized, mixed with air and injected into the Merrimack Valley service area distribution system at a rate of up to approximately 26,000 Mcf per day. The Company does not normally enter into long-term contracts for the purchase of propane to supply either its Merrimack Valley or Cape Cod service areas, and there are no such contracts currently in effect.
Cape Cod Service Area Sources
The Cape Cod service area is directly served by the Algonquin Gas Transmission Company ("Algonquin") through various transportation services. The Company has ten firm transportation agreements with Algonquin which total approximately 37,207 Mcf of capacity per day. Each of these ten Algonquin transportation arrangements will be in effect until either October 31, 2012 or October 31, 2013 and will continue year to year thereafter unless terminated upon twelve months prior written notice. Because there are no production supply sources directly connected to Algonquin, these services are supported by multiple transportation and storage services on seven upstream pipelines of several different pipeline companies. The Company has contracted with four suppliers for various levels of firm supply service up to a total of 20,918 Mcf per day during the peak season, and those contracts have been filed with the DPU for its approval. A ruling is expected shortly. See "Regulatory Matters - Federal Regulation" below.
The Company has six unbundled storage contracts to service the Cape Cod area, three of which are on the Texas Eastern Transmission Company ("Texas Eastern") system and three on the CNG Transmission Corporation ("CNG") system. Colonial has contracted for underground natural gas storage capacity of approximately 461,396 Mcf with Texas Eastern (related firm transportation out of storage of up to approximately 6,451 Mcf per day) through the 2012-2013 heating season and with CNG for underground natural gas storage capacity of approximately 1,056,129 Mcf (related firm transportation out of storage of up to approximately 6,442 Mcf per day). Texas Eastern and Algonquin transport the natural gas from these storage fields to the Cape Cod service area under a variety of transportation contracts.
Also, the Company leases facilities in the Cape Cod service area for the storage (but not the liquefaction) of approximately 180,000 Mcf of LNG and, through May 1994, the Company has contracted with a subsidiary of Algonquin for the annual storage capacity of approximately 42,000 Mcf of LNG in a Providence, Rhode Island facility. In addition, the Company has storage for 27,000 Mcf natural gas equivalent of propane which the Company normally purchases on a short-term basis.
Lastly, the Company has one bundled supply and transportation arrangement for the purchase and firm delivery of gas. The arrangement provides for the delivery to the Company of up to approximately 10,000 Mcf per day and approximately 3,000,000 Mcf annually of LNG as either liquid or vapor for a one year period ending October 31, 1994. Under this arrangement the primary delivery point is the Cape Cod service area, but the Company can designate the Merrimack Valley service area on a day to day basis as an alternate delivery point.
REGULATORY MATTERS Federal Regulation
By the fall of 1993, several interstate pipelines serving Colonial had implemented FERC Order 636. Order 636, issued in 1992, required interstate pipeline companies to "unbundle" gas supply, transportation and storage services previously provided under a unified tariffed service. Now, the Company is responsible for procuring gas supplies and storage services to meet its load requirements, with the pipelines providing transportation only service. In general, Colonial pays negotiated rates for gas supplies and FERC-approved tariffed rates for transportation and storage services. On November 9, 1993, the Company filed each of its gas supply purchase contracts to be reviewed by the DPU, which has not previously exercised jurisdiction with respect to the Company's base load supplies. These FERC ordered changes may increase the contracting, supply and regulatory risk for the Company. At the same time, they could also create a more competitive market for gas supply which would permit the Company to achieve savings in its cost of gas. Because the new rules have recently been implemented, the Company cannot now predict their impact, but it does not expect them to have a material direct effect on its results of operations.
State Regulation
The Company is a public utility subject to the jurisdiction and regulatory authority of the Massachusetts DPU with respect to its rates as well as to the issuance of securities, franchise territory and other related matters. The DPU permits Massachusetts gas companies to utilize a cost of gas adjustment clause which enables them to pass on to their customers, via their monthly gas bill, changes in the cost of gas. Other changes in rates charged to customers are subject to approval by the DPU after formal proceedings.
The Company periodically receives refunds and charges from its gas transporters related to rate adjustments ordered by the FERC. All of the refunds and charges are returned to or collected from utility customers under methods approved by the DPU.
During 1990, the DPU ruled that the Company and eight other Massachusetts gas distribution companies can recover environmental response costs related to former gas manufacturing operations through the CGAC as described under "Environmental Matters".
In August 1992, the DPU approved the second phase of the Company's demand side management program. When completed this program is expected to save over $15 million in gas costs that would have been incurred over the lives of the installed conservation measures. In order to achieve these savings, Colonial is investing $8 million over a two-year period in customer conservation measures such as insulation, heating systems controls and water heating conservation devices. As a result, Colonial expects to reduce customer bills by a net $7 million from the levels they would have been at if no conservation occurred. Colonial has been authorized by the DPU to fully recover all costs associated with the program through the CGAC. In addition, the Company is also authorized to recover the margins lost as a result of this program and, if certain milestones are met, to receive an additional financial incentive of up to $400,000. In January 1994, the Company filed a request with the DPU to extend the operation of this program from September 1994 until September 1995. A ruling is expected shortly.
In October 1992, the Company received authorization from the DPU to extend natural gas service into the Town of Eastham, Massachusetts. Eastham, located at the eastern end of Cape Cod, provides Colonial with new growth opportunities. Colonial believes that there are 5,000 homes and businesses in Eastham that currently utilize other fuels such as oil, electricity and propane which present opportunities for natural gas conversions. The Company has added 104 customers in the town since facilities were constructed in the fourth quarter of 1992.
In November 1992, the DPU approved Colonial's request for two new rate schedules which are designed to overcome equipment cost disadvantages that existed in the natural gas air conditioning and small scale cogeneration markets. By reducing , if not eliminating, these cost disadvantages, the Company expects to increase sales into these markets and increase the usage of its distribution system during off-peak periods. The Company has used these new rate schedules to make proposals to potentially large customers and expects to continue to pursue this new market opportunity in 1994.
In April 1993, the Company applied for a $10.75 million or 7.87% increase of its base rates. This was only the second base rate increase requested by Colonial since 1984. Effective November 1, 1993, the Company received DPU approval of a settlement agreement that called for a base rate increase designed to produce additional revenues of $6.7 million or 4.9% annually. In addition to this rate increase, the DPU approved a proposal to expand the eligibility criteria for Colonial's discount rate to be applied to low-income residential heating customers. The table below summarizes the Company's recent rate activity:
Results of the Company's Requests to Increase Base Revenue
Requested Approved Date Effective Amount Percentage Amount Percentage November 1, 1984 $ 4.30 million 3.73% $2.8 million 2.4% November 1, 1990 $ 12.80 million 9.86% $7.9 million 5.6% November 1, 1993 $ 10.75 million 7.87% $6.7 million 4.9%
In response to new marketing opportunities which may result from the FERC Order 636 and the unbundling of interstate pipeline services, Colonial requested in its 1993 rate filing and gained DPU approval to offer a firm transportation service on the Company's distribution system in order to provide customers with an alternative to traditional firm sales service. The DPU order also permits the Company to retain 10% of the revenues generated from releasing the Company's interstate pipeline transportation capacity to third parties above a threshold of $2,500,000 for 1994. In 1993, the Company earned $2,200,000 in capacity release revenue that was credited back to firm customers and had no impact on earnings.
In October 1993, the DPU approved Colonial's proposal for a rate targeted at the natural gas vehicle market. The approved rates remain in effect over the course of a "market-development" period that extends until January 1, 1997. To assist Colonial in selling additional quantities of natural gas to the natural gas powered vehicle market, the authorized rate is to be indexed $.50 below the retail price of gasoline, provided that it cannot fall below a floor rate equal to Colonial's marginal cost of gas plus 5%. As of December 31, 1993, these rates are approximately equal to $0.70 per gallon equivalent for retail customers.
COMPETITION
Massachusetts law protects gas companies from competition with respect to pipeline distribution of natural gas within its franchise areas by providing that, where a gas company exists in active operation, no other person may lay pipe in the public ways without the approval, after notice and hearing, of the municipal authorities and the DPU. If a municipality desires to enter the gas business, it must take certain procedural steps, including a favorable vote by a majority of the voters in a city election or two-thirds vote at each of two town meetings, and must purchase the property of any gas company operating in the municipality, if the company elects to sell, to the extent, and at such prices, as may be agreed upon or, if no agreement is reached, as the DPU determines.
Although, under a series of FERC orders issued in the late 1980's, certain larger industrial users may attempt to obtain gas from other sources and by-pass a utility's distribution system, the Company does not believe that these FERC orders will have a material adverse effect on its business, in part because large industrial users are not a significant part of its customer base.
The Company provides a transportation-only service of gas through its distribution system for commercial and industrial customers either on a firm basis or an interruptible basis. While such transportation may displace direct gas sales by the Company, this service assists qualifying customers in obtaining the lowest possible gas costs while still contributing to the profit margin of the Company. Profit margins from interruptible sales and interruptible transportation result in lower gas costs which are passed through to firm customers by the cost of gas adjustment clause and, therefore, do not directly affect operating margin or net income.
Fuel oil suppliers, electric utilities and propane suppliers provide competition generally for residential, commercial and industrial customers. Interruptible sales are generally in competition with No. 6 fuel oil which most of the interruptible customers are equipped to use. Lower worldwide oil prices may adversely affect the Company's ability to retain or attract customers. The Company's rates have remained generally competitive with the price of alternative fuels, but the long- term impact of fuel price changes on the Company and its rates cannot be predicted.
The Company is aware that a steam generating enterprise plans to begin operations in the City of Lowell in the fall of 1994. The enterprise would operate a "trigeneration" facility which would produce (i) electric power for its own operation and for sale to the New England power pool, (ii) gases such as CO2 and argon for sale in industrial applications, and (iii) steam for sale through a pipeline system to government offices, schools and businesses within the City of Lowell. The enterprise is in the process of obtaining the easements and other permits and regulatory approvals necessary for its steam pipeline system and its fuel storage and generating facilities.
In the event this Lowell steam generating enterprise is successfully able to produce and distribute steam to government and private businesses in Lowell, many of whom are currently customers of the Company, the Company would be faced with an additional energy source competitor for those customers. It cannot currently be determined what impact, if any, such competition would have on the Company's sales to commercial and industrial customers in Lowell.
ENVIRONMENTAL AND PIPELINE SAFETY MATTERS
The Company is subject to Federal and state laws and regulations dealing with environmental protection. Compliance with such environmental laws and regulations has resulted in increased costs with respect to the Company's existing operations.
Working with the Massachusetts Department of Environmental Protection, the Company is engaged in site assessments and evaluation of remedial options for contamination that has been attributed to the Company's former gas manufacturing site and at various related disposal sites. During 1990, the DPU ruled that Colonial and eight other Massachusetts gas distribution companies can recover environmental response costs related to former gas manufacturing operations over a seven-year period, without carrying costs, through the CGAC. Through December 31, 1993, the Company had incurred $7,750,000 of environmental response costs related to these sites, $1,521,000 for the former gas manufacturing site and $6,229,000 for the related disposal sites. The Company expects to continue incurring costs arising from these environmental matters.
As of December 31, 1993 the Company has recorded on the balance sheet a long-term liability of $5,300,000 representing estimated future response costs relating to these sites based on the Company's preferred methods of remediation; of this amount $2,200,000 relates to the gas manufacturing site. Based upon the DPU order approving rate recovery of environmental response costs, a regulatory asset of $5,300,000 has been recorded on the balance sheet ("Unrecovered Environmental Costs Accrued"). This amount has decreased from the prior year estimate based upon the completion of certain remedial actions and a lower expectation of future costs due to changes in environmental regulations and a better understanding of on-site exposures. Actual environmental response costs to be incurred depends on various factors, and therefore future costs may differ from the amount currently recorded as a liability.
As of December 31, 1993, the Company has settled claims relating to this matter with all liability insurers and other known potentially responsible parties ("PRP"), except for one. The Company expects to receive $250,000 in 1994 from that PRP. In accordance with the DPU order referred to above, half the costs incurred in pursuing insurers and other PRP are recovered from the ratepayers through the CGAC and half are initially borne by the Company. Also, per this order, any insurance and other proceeds are applied first to the Company's costs of pursuing recovery from insurers and other PRP, with the remainder divided equally between the ratepayers and shareholders.
The table below summarizes the environmental response costs incurred and insurance and other proceeds received relating to these environmental response costs:
(In Thousands) Response Costs Insurance and Other Proceeds Recovered Returned Recorded as Non- from Period of to Operating Income Year Incurred Customers Rate Recovery Customers Net of Taxes
1988 $ 853 $ 488 1990-1997 - - 1989 4,031 2,303 1990-1997 - - 1990 639 274 1991-1998 - - 1991 374 107 1992-1999 $ 851 $ 525 1992 617 88 1993-2000 1,121 673 1993 1,236 - 1994-2001 469 290 Total $7,750 $3,260 $2,441 $1,488
TRANSGAS INC.
Transgas primarily provides over-the-road transportation of LNG, propane and other commodities. Transgas acts as a common carrier for approximately 60 commercial and gas utility customers located in the eastern half of the United States. Canadian over- the-road transportation services are also available through CGI Transport Limited, which is a wholly-owned subsidiary of Transgas. Transgas also provides a unique LNG portable pipeline service, which permits gas utilities to provide continuous supply of natural gas to communities while the pipeline supply is temporarily interrupted during scheduled maintenance, upgrading, and recertification, or during emergency interruption.
Rates charged for Transgas' common carrier transportation service are filed as tariffs under operating authorities issued to Transgas by the Interstate Commerce Commission and regulatory agencies in various states, and to CGI Transport Limited by Canadian provincial authorities. As common carriers, they are also subject to various regulations applicable to motor common carriers, including accounting matters, safety matters, rates charged and various fiscal matters.
Transgas had revenues of $8.1 million in 1993. Approximately 50% of Transgas' revenue in 1993 was derived from transporting Algerian LNG from the Distrigas import terminal which is located in Everett, Massachusetts.
Transgas provides over-the-road transportation services by utilizing a permanent fleet of 37 tractors. Transgas operates 56 trailers which are specifically designed for the transportation of cryogenic liquids. Of those cryogenic transport trailers, 21 are leased on a long-term basis. In addition, Transgas has 25 trailers which are designed for the transportation of propane. Of those propane transport trailers, 4 are leased on a long-term basis. There were also 12 owner-operated tractors utilized for propane hauling during the year. In addition to the equipment described above, Transgas also has 11 trailers which are designed for carrying vaporizers and 2 flat bed trailers.
Transgas competes with many other motor carriers engaged in the transportation of various gases and other products. Transgas believes, however, that it is the leading over-the-road transporter of LNG due to the size of its fleet of specialized cryogenic transport trailers.
Transgas closed its unprofitable bulk cement trucking operation during the first half of 1993. The closing of this operation permitted Transgas to reduce overhead expenses. In addition, trucking equipment associated with this operation were sold at prices exceeding net book value.
Item 1A.
Item 1A. Executive Officers of the Registrant.
The following table indicates the present executive officers of the Company, their ages, the dates when their service with the Company began and their respective positions with the Company.
Affiliated with Name and Age Position with Company Company Since
Frederic L. Putnam, Chairman and Chief Executive Officer 1953 Jr. (69)
Charles O. Swanson (62) President 1971
Frederic L. Putnam, Executive Vice President and III (48) General Manager 1975
John P. Harrington (51) Vice President - Gas Supply 1966
Nickolas Stavropoulos Vice President - Finance and (36) Chief Financial Officer 1979
Victor W. Baur (50) President - Transgas Inc. 1972
Dennis W. Carroll (47) Vice President and Treasurer 1990
Charles A. Cook (41) Vice President and General Counsel 1978
Mr. Putnam, Jr. has been Chairman of the Board of Directors since 1981 and the Chief Executive Officer since 1977. He has also been a Director since 1973.
Mr. Swanson has been President since July 1990. He is scheduled to retire on May 1, 1994. He had been Executive Vice President since November 1986. He has also been a Director since 1986.
Mr. Putnam, III, the son of F.L. Putnam, Jr., has been Executive Vice President and General Manager since April 1993. He has been elected President effective May 1, 1994. He had been Vice President and General Manager since August 1989. He has also been a Director since November 1991.
Mr. Harrington has been Vice President - Gas Supply since August 1989. He had been Vice President - General Manager - Lowell Division since November 1986. He has also been a Director since February 1993.
Mr. Stavropoulos has been Vice President - Finance and Chief Financial Officer since August 1989. He had been Vice President - Rates and Planning since November 1985. He has also been a Director since February 1993.
Mr. Baur has been President of Transgas Inc. since July 1990. He had been Executive Vice President - General Manager of Transgas Inc. since 1984. He also became a Director in August 1993.
Mr. Carroll has been Vice President and Treasurer since August 1990. Prior to then he was a partner with Grant Thornton, the Company's independent certified public accountants.
Mr. Cook has been Vice President and General Counsel since July 1990. He had been Vice President and Counsel since August 1989.
These officers hold office until the next annual meeting of the Board of Directors or until their successors are duly elected and qualified.
Item 2.
Item 2. Properties.
The Company has two principal operations centers and a natural gas liquefaction and storage facility with approximately 1,000,000 Mcf of LNG storage capacity located in Tewksbury, Massachusetts. The Company's gas production and storage facilities, metering and regulation stations and operations centers are generally located on land it owns.
A 175,000 Mcf LNG storage tank located on land owned by the Company in South Yarmouth, Massachusetts is leased from an unaffiliated company through 1998. The Company also has a lease which expires in 2002 for office facilities in Lowell, Massachusetts.
The Company's distribution mains of approximately 2,690 miles are located within public highways under franchises or permits from state or municipal authorities, or on land owned by others under easements or licenses from the owners. The Company's first mortgage bonds are collateralized by utility property.
Management considers that the Company's properties are adequate for the conduct of its business for the reasonably foreseeable future.
Item 3.
Item 3. Legal Proceedings.
See Item 1, "Business--Environmental and Pipeline Safety Matters" above, which is incorporated herein.
Item 4.
Item 4. Submission of Matters to a Vote of Security Holders.
No matter was submitted to a vote of the Company's security holders during the quarter ended December 31, 1993.
PART II
Item 5.
Item 5. Market for Registrant's Common Stock and Related Stockholder Matters.
The information required to be reported hereunder is incorporated by reference to the information reported in the Company's 1993 annual report to stockholders under the caption "Shareholder Information" and under Note D of the "Notes to Consolidated Financial Statements".
Item 6.
Item 6. Selected Financial Data.
The information required to be reported hereunder is incorporated by reference to the information reported in the Company's 1993 annual report to stockholders under the caption "Selected Financial Data".
Item 7.
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.
The information required to be reported hereunder is incorporated by reference to the information reported in the Company's 1993 annual report to stockholders under the caption "Management's Discussion and Analysis of Financial Condition and Results of Operations".
Item 8.
Item 8. Financial Statements and Supplementary Data.
The information required to be reported hereunder is incorporated by reference to the information reported in the Company's 1993 annual report to stockholders under the following captions: "Consolidated Statements of Income", "Consolidated Balance Sheets", "Consolidated Statements of Cash Flows", "Consolidated Statements of Common Equity", "Notes to Consolidated Financial Statements", "Report of Independent Certified Public Accountants" and "Shareholder Information".
Item 9.
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.
None.
PART III
Item 10.
Item 10. Directors and Executive Officers of the Registrant.
The information required to be reported hereunder for the Company's Directors is incorporated by reference to the information reported in the Company's Proxy Statement for its 1994 annual meeting of stockholders under the caption "Election of Directors".
The information required to be reported hereunder for the Executive Officers of the Registrant is incorporated by reference to the information in Item 1A of this Form 10-K under the caption "Executive Officers of the Registrant".
Item 11.
Item 11. Executive Compensation.
The information required to be reported hereunder is incorporated by reference to the information reported in the Company's Proxy Statement for its 1994 annual meeting of stockholders under the captions "Executive Compensation" and under the subheading "Directors' Compensation" of the caption "Election of Directors".
Item 12.
Item 12. Security Ownership of Certain Beneficial Owners and Management.
The information required to be reported hereunder is incorporated by reference to the information reported in the Company's Proxy Statement for its 1994 annual meeting of stockholders under the caption "Security Ownership of Certain Beneficial Owners and Management".
Item 13.
Item 13. Certain Relationships and Related Transactions.
The information required to be reported hereunder is incorporated by reference to the information reported in the Company's Proxy Statement for its 1994 annual meeting of stockholders under the caption "Election of Directors".
PART IV
Item 14.
Item 14. Exhibits, Financial Statement Schedules, and Reports on Form 8-K.
(a) 1. Financial Statements The Consolidated Financial Statements of the Company (including the Report of Independent Certified Public Accountants) required to be reported herein are incorporated by reference to the information reported in the Company's 1993 annual report to stockholders under the following captions: "Consolidated Statements of Income", "Consolidated Balance Sheets", "Consolidated Statements of Cash Flows", "Consolidated Statements of Common Equity", "Notes to Consolidated Financial Statements" and "Report of Independent Certified Public Accountants".
2. Financial Statement Schedules The following Financial Statement Schedules and report thereon are filed as part of this Form 10-K on the pages indicated below:
Schedule Number Description
Report of Independent Certified Public Accountants on Schedules
V Property, Plant and Equipment for the three years ended December 31, 1993
VI Accumulated Depreciation, Depletion and Amortization of Property, Plant and Equipment for the three years ended December 31, 1993
VIII Valuation and Qualifying Accounts for the three years ended December 31, 1993
IX Short-term Debt for the three years ended December 31, 1993
X Supplementary Income Statement Information for the three years ended December 31, 1993
Schedules other than those listed above are either not required or not applicable, or the required information is shown in the financial statements or notes thereto. Columns omitted from schedules filed have been omitted because the information is not applicable.
3. List of Exhibits
Exhibit Number Exhibit Reference
3a Restated Articles of Organization of Filed herewith as Colonial Gas Company, dated April Exhibit 3a. 19, 1989, as amended on July 16, 1992, and supplemented by a Certificate of Vote of Directors establishing a series of a class of stock filed on November 30, 1993.
3b By-Laws of Colonial Gas Company, as Filed herewith as amended to date. Exhibit 3b.
4a Second Amended and Restated First Incorporated herein Mortgage Indenture, dated as of June by reference. 1, 1992, filed as Exhibit 4(b) to Form 10-Q of the Registrant for the quarter ended June 30, 1992.
4b First Supplemental Indenture, dated Incorporated herein as of June 15, 1992, filed as by reference. Exhibit 4(c) to Form 10-Q of the Registrant for the quarter ended June 30, 1992.
4c Credit Agreement for Colonial Gas Incorporated herein Company, dated as of June 27, 1990, by reference. filed as Exhibit 10(a) to Form 8-K of the Registrant for the quarter ended June 30, 1990, as amended on December 24, 1991, filed as Exhibit 4(j) to Form 10-K of the Registrant for the year ended December 31, 1991, as amended on July 27, 1993, filed as Exhibit 4(a) to Form 10-Q of the Registrant for the quarter ended June 30, 1993.
4d Credit Agreement for Massachusetts Incorporated herein Fuel Inventory Trust, dated as of by reference. June 27, 1990, filed as Exhibit 10(b) to Form 8-K of the Registrant for the quarter ended June 30, 1990, as amended on July 27, 1993, filed as Exhibit 4(b) to Form 10-Q of the Registrant for the quarter ended June 30, 1993.
4e Purchase Contract, dated as of June Incorporated herein 27, 1990 between Massachusetts Fuel by reference. Inventory Trust acting by and through its Trustee, Shawmut Bank, N.A. and Colonial Gas Company, filed as Exhibit 10(e) to Form 8-K of the Registrant for quarter ended June 30, 1990.
4f Security Agreement and Assignment of Incorporated herein Contracts, dated as of June 27, 1990 by reference. made by Massachusetts Fuel Inventory Trust in favor of The First National Bank of Boston as Agent, for the Ratable Benefit of the Secured Parties Named Herein, filed as Exhibit 10(c) to Form 8-K of the Registrant for the quarter ended June 30, 1990.
4g Trust Agreement, dated as of June Incorporated herein 22, 1990 between Colonial Gas by reference. Company (as Trustor) and Shawmut Bank, N.A. (as Trustee), filed as Exhibit 10(d) to Form 8-K of the Registrant for quarter ended June 30, 1990.
10a Storage Service Transportation Incorporated herein Contract with Tennessee Gas Pipeline by reference. Company, a Division of Tenneco Inc., dated January 1, 1983, filed as Exhibit 10(b) to the Registrant's Registration Statement on Form S-2. Commission File No. 2-93118.
10b Service Agreement with Algonquin Gas Incorporated herein Transmission Company, dated December by reference. 11, 1972, filed as Exhibit 13(n) to Colonial Gas Energy System's Registration Statement on Form S-1. Commission File No. 2-54673.
10c Storage Service Agreement with Penn- Incorporated herein York Energy Corporation, dated as of by reference. December 21, 1984, filed as Exhibit 10(r) to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 1984.
10d Agreement for Sale of Gas between Incorporated herein Bay State Gas Company and Colonial by reference. Gas Company, dated December 11, 1987, filed as Exhibit 10(m) to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 1987.
10e Agreement for Liquefaction of Gas Incorporated herein with Bay State Gas Company, dated by reference. March 14, 1988, filed as Exhibit 10(p) to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 1989.
10f Service Agreement with Distrigas of Incorporated herein Massachusetts Corporation, as by reference. related to firm vapor service, dated September 30, 1989, filed as Exhibit 10(q) to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 1989.
10g Letter Agreement with Distrigas of Incorporated herein Massachusetts Corporation, related by reference. to firm vapor service agreement, dated December 8, 1989, filed as Exhibit 10(r) to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 1989.
10h Service Agreement with Distrigas of Incorporated herein Massachusetts Corporation, related by reference. to firm vapor service, dated October 31, 1990, filed as Exhibit 10(s) to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 1990.
10i Gas Transportation Contract for Firm Incorporated herein Reserved Service with Iroquois, by reference. dated February 7, 1991, filed as Exhibit 10(v) to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 1990.
10j Gas Sales Agreement No. 1 with ANE, Incorporated herein dated February 7, 1991, filed as by reference. Exhibit 10(y) to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 1990.
10k Gas Sales Agreement between Sonat Incorporated herein Exploration Company and Sonat by reference. Marketing Company and Colonial Gas Company, dated October 1, 1990, filed as Exhibit 10(cc) to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 1990.
10l Firm Natural Gas Transportation Incorporated herein Agreement between Tennessee Gas by reference. Pipeline Company and Colonial Gas Company (under Rate Schedule NET- NE), dated February 7, 1991, filed as Exhibit 10(ff) to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 1991.
10m Amended and Restated Gas Sales Incorporated herein Agreement between Sonat Marketing by reference. Company and Colonial Gas Company, dated July 16, 1991, filed as Exhibit 10(jj) to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 1991.
10n Letter Agreement with Distrigas of Incorporated herein Massachusetts Corporation, related by reference. to firm vapor service agreement, dated November 16, 1992, filed as Exhibit 10(dd) to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 1992.
10o Gas Transportation Contract for Firm Incorporated herein Reserved Service between Iroquois by reference. Gas Transmission System, L.P. and Colonial Gas Company, dated November 25, 1991, filed as Exhibit 10(gg) to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 1992.
10p Service Agreement between Algonquin Filed herewith as Gas Transmission Company and Exhibit 10p. Colonial Gas Company (under Rate Schedule AFT-E), dated June 1, 1993.
10q Service Agreement between Algonquin Filed herewith as Gas Transmission Company and Exhibit 10q. Colonial Gas Company (under Rate Schedule AFT-1), dated June 1, 1993.
10r Service Agreement between Algonquin Filed herewith as Gas Transmission Company and Exhibit 10r. Colonial Gas Company (under Rate Schedule AFT-1), dated June 1, 1993.
10s Service Agreement between Algonquin Filed herewith as Gas Transmission Company and Exhibit 10s. Colonial Gas Company (under Rate Schedule AFT-1), dated June 1, 1993.
10t Service Agreement between Algonquin Filed herewith as Gas Transmission Company and Exhibit 10t. Colonial Gas Company (under Rate Schedule AFT-E), dated June 1, 1993.
10u Service Agreement between Algonquin Filed herewith as Gas Transmission Company and Exhibit 10u. Colonial Gas Company (under Rate Schedule AFT-1), dated June 1, 1993.
10v Service Agreement between Algonquin Filed herewith as Gas Transmission Company and Exhibit 10v. Colonial Gas Company (under Rate Schedule AFT-1), dated June 1, 1993.
10w Service Agreement between Texas Filed herewith as Eastern Transmission Corporation and Exhibit 10w. Colonial Gas Company (under Rate Schedule CDS), dated June 1, 1993.
10x Service Agreement between Texas Filed herewith as Eastern Transmission Corporation and Exhibit 10x. Colonial Gas Company (under Rate Schedule FT-1), dated June 1, 1993.
10y Service Agreement between Texas Filed herewith as Eastern Transmission Corporation and Exhibit 10y. Colonial Gas Company (under Rate Schedule FTS-8), dated June 1, 1993.
10z Service Agreement between Texas Filed herewith as Eastern Transmission Corporation and Exhibit 10z. Colonial Gas Company (under Rate Schedule FTS-7), dated June 1, 1993.
10aa Service Agreement between Texas Filed herewith as Eastern Transmission Corporation and Exhibit 10aa. Colonial Gas Company (under Rate Schedule FT-1), dated June 1, 1993.
10bb Service Agreement between Texas Filed herewith as Eastern Transmission Corporation and Exhibit 10bb. Colonial Gas Company (under Rate Schedule SS-1), dated June 1, 1993.
10cc Service Agreement between Texas Filed herewith as Eastern Transmission Corporation and Exhibit 10cc. Colonial Gas Company (under Rate Schedule SS-1), dated June 1, 1993.
10dd Service Agreement between Texas Filed herewith as Eastern Transmission Corporation and Exhibit 10dd. Colonial Gas Company (under Rate Schedule SS-1), dated June 1, 1993.
10ee Service Agreement between Filed herewith as Transcontinental Gas Pipe Line Exhibit 10ee. Corporation and Colonial Gas Company (under Rate Schedule FT), dated June 1, 1993.
10ff Service Agreement between Texas Filed herewith as Eastern Transmission Corporation and Exhibit 10ff. Colonial Gas Company (under Rate Schedule FT-1), dated June 1, 1993.
10gg Firm Gas Transportation Agreement Filed herewith as between Koch Gateway Pipeline Company Exhibit 10gg. and Colonial Gas Company, dated December 1, 1993.
10hh Service Agreement between Texas Filed herewith as Eastern Transmission Corporation and Exhibit 10hh. Colonial Gas Company (under Rate Schedule FT-1), dated June 1, 1993.
10ii Service Agreement between Texas Filed herewith as Eastern Transmission Corporation and Exhibit 10ii. Colonial Gas Company (under Rate Schedule FT-1), dated June 1, 1993.
10jj Service Agreement between Algonquin Filed herewith as Gas Transmission Company and Exhibit 10jj. Colonial Gas Company (under Rate Schedule PSS-T), dated August 1, 1993.
10kk Service Agreement between Algonquin Filed herewith as Gas Transmission Company and Exhibit 10kk. Colonial Gas Company (under Rate Schedule AFT-2), dated August 1, 1993.
10ll Service Agreement between Algonquin Filed herewith as Gas Transmission Company and Exhibit 10ll. Colonial Gas Company (under Rate Schedule AFT-1), dated August 1, 1993.
10mm Gas Storage Contract between Filed herewith as Tennessee Gas Pipeline Company and Exhibit 10mm. Colonial Gas Company (under Rate Schedule FS), dated September 1, 1993.
10nn Gas Transportation Agreement between Filed herewith as Tennessee Gas Pipeline Company and Exhibit 10nn. Colonial Gas Company (under Rate Schedule FT-A), dated September 1, 1993.
10oo Gas Transportation Agreement between Filed herewith as Tennessee Gas Pipeline Company and Exhibit 10oo. Colonial Gas Company (under Rate Schedule FT-A), dated September 1, 1993.
10pp Gas Transportation Agreement between Filed herewith as Tennessee Gas Pipeline Company and Exhibit 10pp. Colonial Gas Company (under Rate Schedule FT-A), dated September 1, 1993.
10qq Service Agreement between Algonquin Filed herewith as Gas Transmission Company and Exhibit 10qq. Colonial Gas Company (under Rate Schedule FST-LG), dated October 1, 1993.
10rr Service Agreement between CNG Filed herewith as Transmission Corporation and Exhibit 10rr. Colonial Gas Company (under Rate Schedule FTNN), dated October 1, 1993.
10ss Service Agreement between CNG Filed herewith as Transmission Corporation and Exhibit 10ss. Colonial Gas Company (under Rate Schedule GSS), dated October 1, 1993.
10tt Service Agreements between CNG Filed herewith as Transmission Corporation and Exhibit 10tt. Colonial Gas Company (under Rate Schedule GSS-II), dated September 30, 1993.
10uu Service Agreement between Texas Filed herewith as Eastern Transmission Corporation and Exhibit 10uu. Colonial Gas Company (under Rate Schedule FT-1), dated October 1, 1993.
10vv Gas Transportation Agreement between Filed herewith as Tennessee Gas Pipeline Company and Exhibit 10vv. Colonial Gas Company (under Rate Schedule FT-A), dated September 1, 1993.
10ww Service Agreement between National Filed herewith as Fuel Gas Supply Corporation and Exhibit 10ww. Colonial Gas Company (under Rate Schedule EFT), dated October 28, 1993.
10xx Gas Transportation Agreement between Filed herewith as Tennessee Gas Pipeline Company and Exhibit 10xx. Colonial Gas Company (under Rate Schedule FT-A), dated September 1, 1993.
10yy Service Agreement between Algonquin Filed herewith as Gas Transmission Company and Exhibit 10yy. Colonial Gas Company (under Rate Schedule AIT-1), dated September 15, 1993.
10zz Gas Transportation Agreement between Filed herewith as Tennessee Gas Pipeline Company and Exhibit 10zz. Colonial Gas Company (under Rate Schedule FT-A), dated October 1, 1993.
10aaa Lease Agreement, dated as of May 1, Incorporated herein 1982, with Olde Market House by reference. Associates of Lowell, filed as Exhibit 10(y) to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 1982.
10bbb Lease of Equipment from The National Incorporated herein Shawmut Bank of Boston (now Shawmut, by reference. Bank N.A.) as Trustee, as Lessor dated as of May 1, 1973, filed as Exhibit 13(c) to Colonial Gas Energy System's Registration Statement on Form S-1. Commission File No. 2- 54673.
10ccc Form Employment Agreement for Incorporated herein corporate officers, filed as Exhibit by reference. 10(kk) to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 1992.
10ddd Supplemental Retirement Plan Incorporated herein Agreement between Colonial Gas by reference. Company and F. L. Putnam, Jr., dated December 29, 1981, filed as Exhibit 10(ll) to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 1992.
10eee Supplemental Retirement Plan Incorporated herein Agreement between Colonial Gas by reference. Company and C. O. Swanson, dated December 29, 1981, filed as Exhibit 10(mm) to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 1992.
13a Those portions of the 1993 Annual Filed herewith as Report to Stockholders which have Exhibit 13a. been incorporated by reference in Part II Items 5 - 8 and Part IV Item 14 part a 1.
22a Subsidiaries of the Registrant. Filed herewith as Exhibit 22a.
24a Consent of Independent Certified Filed herewith as Public Accountants. Exhibit 24a. ____________________
EXECUTIVE COMPENSATION PLANS AND ARRANGEMENTS
Exhibits 10bbb, 10ccc and 10ddd above are management contracts or compensatory plans or arrangements in which the executive officers of the Company participate.
b)Reports on Form 8-K.
There were no reports on Form 8-K for the quarter ended December 31, 1993.
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS ON SCHEDULES
To the Shareholders of Colonial Gas Company
In connection with our audit of the consolidated financial statements of Colonial Gas Company and subsidiaries referred to in our report dated January 18, 1994, which is included in the 1993 Annual Report to Stockholders and incorporated by reference in Part II of this Form 10-K, we have also audited the schedules listed at Part IV, Item 14(a)2. In our opinion, these schedules present fairly, in all material respects, the information required to be set forth therein.
GRANT THORNTON
Boston, Massachusetts January 18, 1994
[END OF REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS ON SCHEDULES] SCHEDULE V
COLONIAL GAS COMPANY AND SUBSIDIARIES PROPERTY, PLANT AND EQUIPMENT Year ended December 31, 1993 (In Thousands)
COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E COLUMN F
OTHER CHANGES- BALANCE BALANCE AT ADD AT CLASSIFI- BEGINNING ADDITIONS RETIRE- (DEDUCT)- END OF CATION OF PERIOD AT COST MENTS DESCRIBE PERIOD
Utility Property $ 71 (b) Land, rights of way and structures $ 12,269 $ - $ 131 345 (a) $ 12,554 						 1,233 (a) Gas production equipment 10,403 - 151	 287 (b) 11,772 19,464 (a) Transmission and distribution 196,256 - 747 (358)(b) 214,615 Utilization equipment 5,674 - 284 954 (a) 6,344 General equipment 6,188 - 462 2,226 (a) 7,952 Intangible plant 372 418 - - 790 Construction work in progress 5,353 25,412 - (24,222)(a) 6,543 Total Utility Property $236,515 $25,830 $ 1,775 $ - $260,570
Non-Utility Property Land and buildings $ 1,348 $ 12 $ 25 $ - $ 1,335 Services 640 - - - 640 General equipment 8,742 359 2,156 - 6,945 Total Non- Utility Property $ 10,730 $ 371 $ 2,181 $ - $ 8,920
Assets Under Capital Leases $ 8,329 $ 494 $ 1,348 $ - $ 7,475
_____________________________ See Note A of Notes to Consolidated Financial Statements. (a) Transfers to plant in service from construction work in progress. (b) Intercompany transfer or reclassification of fixed assets.
[END OF COLONIAL GAS COMPANY AND SUBSIDIARIES PROPERTY, PLANT AND EQUIPMENT YEAR ENDED DECEMBER 31, 1993]
SCHEDULE V
COLONIAL GAS COMPANY AND SUBSIDIARIES PROPERTY, PLANT AND EQUIPMENT Year ended December 31, 1992 (In Thousands)
COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E COLUMN F
OTHER CHANGES- BALANCE BALANCE AT ADD AT CLASSIFI- BEGINNING ADDITIONS RETIRE- (DEDUCT)- END OF CATION OF PERIOD AT COST MENTS DESCRIBE PERIOD
Utility Property
Land, rights of way and structures $ 11,977 $ - $ 8 $ 300 (a) $ 12,269 Gas production equipment 10,549 - 180	 34 (a) 10,403 Transmission and distribution 177,916 - 528 18,868 (a) 196,256 Utilization equipment 4,376 - 221 1,519 (a) 5,674 General equipment 3,065 - 83 3,206 (a) 6,188 Intangible plant 433 372 - (433)(a) 372 Construction work in progress (5)(b) 2,547 26,300 - (23,489)(a) 5,353 Total Utility Property $210,863 $26,672 $ 1,020 $ - $236,515
Non-Utility Property Land and buildings $ 1,343 $ - $ - $ 5 (b) $ 1,348 Services 640 - - - 640 General equipment 8,626 154 38 - 8,742 Total Non- Utility Property $ 10,609 $ 154 $ 38 $ 5 $ 10,730
Assets Under Capital Leases $ 7,963 $ 628 $ 262 $ - $ 8,329
_____________________________ See Note A of Notes to Consolidated Financial Statements. (a) Transfers to plant in service from construction work in progress. (b) Intercompany transfer or reclassification of fixed assets.
[END OF COLONIAL GAS COMPANY AND SUBSIDIARIES PROPERTY, PLANT AND EQUIPMENT YEAR ENDED DECEMBER 31, 1992]
SCHEDULE V
COLONIAL GAS COMPANY AND SUBSIDIARIES PROPERTY, PLANT AND EQUIPMENT Year ended December 31, 1991 (In Thousands)
COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E COLUMN F
OTHER CHANGES- BALANCE BALANCE AT ADD AT CLASSIFI- BEGINNING ADDITIONS RETIRE- (DEDUCT)- END OF CATION OF PERIOD AT COST MENTS DESCRIBE PERIOD
Utility Property
Land, rights of way and $ (47)(b) structures $ 11,976 $ - $ 46 94 (a) $ 11,977 Gas production equipment 10,642 - 173	 80 (a) 10,549 Transmission and distribution 164,013 - 534 14,437 (a) 177,916 Utilization equipment 2,799 - 163 1,740 (a) 4,376 General equipment 2,765 - 24 324 (a) 3,065 Intangible plant - 433 - - 433 Construction work in progress 3,108 16,114 - (16,675)(a) 2,547 Total Utility Property $195,303 $16,547 $ 940 $ (47) $210,863
Non-Utility Property Land and buildings $ 1,346 $ 14 $ 64 $ 47 (b) $ 1,343 Services 640 - - - 640 General equipment 8,318 563 255 - 8,626 Total Non- Utility Property $ 10,304 $ 577 $ 319 $ 47 $ 10,609
Assets Under Capital Leases $ 8,646 $ 273 $ 956 $ - $ 7,963
_____________________________ See Note A of Notes to Consolidated Financial Statements. (a) Transfers to plant in service from construction work in progress. (b) Intercompany transfer or reclassification of fixed assets.
[END OF COLONIAL GAS COMPANY AND SUBSIDIARIES PROPERTY, PLANT AND EQUIPMENT YEAR ENDED DECEMBER 31, 1991]
SCHEDULE VI
COLONIAL GAS COMPANY AND SUBSIDIARIES ACCUMULATED DEPRECIATION, DEPLETION AND AMORTIZATION OF PROPERTY, PLANT AND EQUIPMENT For the Three Years Ended December 31, 1993 (In Thousands)
COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E COLUMN F
ADDITIONS OTHER BALANCE CHARGED CHANGES - AT TO COSTS ADD BALANCE 		 BEGINNING AND	 RETIRE- (DEDUCT)- AT END DESCRIPTION OF PERIOD EXPENSES MENTS DESCRIBE OF PERIOD
Year Ended December 31, 1993 Accumulated depreciation of utility property (separate reserves not maintained) $52,700 $6,939 $1,882 $ 100 (1) $57,857
Accumulated depreciation of non- utility property $ 6,691 $ 670 $1,615 $ (61)(3) $ 5,685
Amortization on $ 61 (3) capital leases $ 3,963 $ - $ - $ (463) $ 3,561
Year Ended December 31, 1992 Accumulated depreciation of utility property (separate reserves not maintained) $48,127 $6,023 $1,464 $ 14 (1) $52,700
Accumulated depreciation of non- utility property $ 5,842 $ 941 $ 8 $ (84)(3) $ 6,691
Amortization on $ 84 (3) capital leases $ 3,406 $ - $ - $ 473 $ 3,963
Year Ended December 31, 1991 Accumulated depreciation of utility property (separate reserves not maintained) $43,823 $5,488 $1,276 $ 92 (1) $48,127 						 Accumulated depreciation of non- $ (265)(2) utility property $ 5,228 $ 957 $ - $ (78)(3) $ 5,842
Amortization on $ 78 (3) capital leases $ 3,684 $ - $ - $ (356) $ 3,406
_______________________________________________ (1) Depreciation charged on clearing accounts. (2) Sold to third party. (3) Capitalized tractor lease.
[END OF COLONIAL GAS COMPANY AND SUBSIDIARIES ACCUMULATED DEPRECIATION, DEPLETION AND AMORTIZATION OF PROPERTY, PLANT AND EQUIPMENT FOR THE THREE YEARS ENDED DECEMBER 31, 1993]
SCHEDULE VIII
COLONIAL GAS COMPANY AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS For the Three Years Ended December 31, 1993 (In Thousands)
COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E
ADDITIONS BALANCE CHARGED BALANCE AT TO COSTS AT BEGINNING AND DEDUC- END OF DESCRIPTION OF PERIOD EXPENSES TIONS PERIOD
For the Year Ended December 31, 1993
Reserve for uncollectible accounts 	 $1,187 $2,101 $1,606 (1) $1,682
Reserve for insurance claims $ 548 $ 616 $ 566 $ 598
For the Year Ended December 31, 1992
Reserve for uncollectible accounts 	 $ 778 $1,696 $1,287 (1) $1,187
Reserve for insurance claims $ - $ 622 $ 74 $ 548
For the Year Ended December 31, 1991
Reserve for uncollectible accounts 	 $ 856 $1,516 $1,594 (1) $ 778
Reserve for insurance claims $ 50 $ - $ 50 $ - _____________________________ (1) Accounts charged off, net of collections.
[END OF COLONIAL GAS COMPANY AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS FOR THE THREE YEARS ENDED DECEMBER 31, 1993]
SCHEDULE IX
COLONIAL GAS COMPANY AND SUBSIDIARIES SHORT-TERM DEBT For the Three Years Ended December 31, 1993 (In Thousands Except Percentages)
COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E COLUMN F WEIGHTED WEIGHTED AVERAGE MAXIMUM AVERAGE AVERAGE CATEGORY OF INTEREST AMOUNT AMOUNT INTEREST AGGREGATE BALANCE RATE OUTSTANDING OUTSTANDING RATE SHORT-TERM AT END AT END DURING THE DURING THE DURING THE DEBT OF PERIOD OF PERIOD PERIOD PERIOD (1) PERIOD (2)
Year Ended December 31, 1993
Bank Loans $32,600 3.64% $32,600 $14,546 3.71% Gas Inventory Purchase $15,233 3.47% $15,233 $10,982 3.55% Obligations
Year Ended December 31, 1992
Bank Loans $24,500 3.76% $42,600 $20,314 4.62% Gas Inventory Purchase $14,741 3.81% $11,768 $10,676 4.05% Obligations
Year Ended December 31, 1991
Bank Loans $28,000 5.06% $28,000 $ 9,251 6.42% Gas Inventory Purchase $11,726 5.12% $11,864 $ 9,601 6.54% Obligations
_____________________________ See Note F of Notes to Consolidated Financial Statements. (1) Amounts calculated by weighting the average of amount of short-term debt outstanding each day during the year. (2) Rates calculated by dividing actual interest expense by average outstanding balance of short-term debt.
[END OF COLONIAL GAS COMPANY AND SUBSIDIARIES SHORT-TERM DEBT FOR THE THREE YEARS ENDED DECEMBER 31, 1993]
SCHEDULE X
COLONIAL GAS COMPANY AND SUBSIDIARIES SUPPLEMENTARY INCOME STATEMENT INFORMATION
CHARGED TO COSTS AND EXPENSES YEAR ENDED DECEMBER 31, 1993 1992 1991 Maintenance and repairs included in: Operating Expenses - Maintenance $5,631 $5,477 $5,124 Other Income 444 593 550
Total $6,075 $6,070 $5,674
Depreciation, depletion and amortization of property, plant equipment included in: Operating Expenses - Depreciation $6,831 $5,895 $5,488 Operating Expenses - Operations 240 175 126 Other Income 632 906 910
Total $7,703 $6,976 $6,524
Taxes, other than payroll and income Local property taxes included in: Operating Expenses - Local property taxes $2,496 $2,059 $1,683 Other Income 42 36 31 2,538 2,095 1,714 Other taxes included in: Operating Expenses - Other Taxes 130 131 103 Other Income 186 299 347 316 430 450
Total $2,854 $2,525 $2,164
Depreciation and amortization of intangible assets, pre-operating costs and similar deferrals, royalties and advertising costs are not shown since the amounts are either less than 1% of operating revenues or none.
[END OF COLONIAL GAS COMPANY AND SUBSIDIARIES SUPPLEMENTARY INCOME STATEMENT INFORMATION]
SIGNATURES
Pursuant to the requirements of Section 13 or 15 (d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. COLONIAL GAS COMPANY Date By March 18 , 1994 F.L. Putnam, Jr., Chairman of the Board of Directors
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
Signature Title Date
F.L. Putnam, Jr. Chief Executive Officer, March 18 , 1994 Director
Nickolas Stavropoulos Vice President - Finance and March 18 , 1994 Chief Financial Officer, Director (Principal Financial Officer)
D.W. Carroll Vice President and Treasurer March 18 , 1994 (Principal Accounting Officer)
V.W. Baur Director March 18 , 1994
A.C. Dudley Director March 18 , 1994
J.P. Harrington Director March 18 , 1994
H.C. Homeyer Director March 18 , 1994
R.L. Hull Director March 18 , 1994
K.R. Lydecker Director March 18 , 1994
F.L. Putnam, III Director March 18 , 1994
J.F. Reilly, Jr. Director March 18 , 1994
A.B. Sides, Jr. Director March 18 , 1994
M.M. Stapleton Director March 18 , 1994
C.O. Swanson Director March 18 , 1994
G.E. Wik Director March 18 , 1994