[Federal Register Volume 65, Number 232 (Friday, December 1, 2000)]
[Notices]
[Pages 75322-75323]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-30663]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 35-27281]


Filings Under the Public Utility Holding Company Act of 1935, as 
Amended (``Act'')

November 22, 2000.
    Notice is hereby given that the following filing(s) has/have been 
made with the Commission pursuant to provisions of the Act and rules 
promulgated under the Act. All interested persons are referred to the 
application(s) and/or declaration(s) for complete statements of the 
proposed transaction(s) summarized below. The application(s) and/or 
declaration(s) and any amendment(s) is/are available for public 
inspection through the Commission's Branch of Public Reference.
    Interested persons wishing to comment or request a hearing on the 
application(s) and/or declaration(s) should submit their views in 
writing by December 18, 2000, to the Secretary, Securities and Exchange 
Commission, Washington, DC 20549-0609, and serve a copy on the relevant 
applicant(s) and/or declarant(s) at the address(es) specified below. 
Proof of service (by affidavit or, in the case of an attorney at law, 
by certificate) should be filed with the request. Any request for 
hearing should identify specifically the issues of facts or law that 
are disputed. A person who so requests will be notified of any hearing, 
if ordered, and will receive a copy of any notice or order issued in 
the matter. After December 18, 2000, the application(s) and/or 
declaration(s), as filed or as amended, may be granted and/or permitted 
to become effective.

Northeast Utilities, et al. (70-9755)

    Northeast Utilities (``NU''), 174 Brush Hill Avenue, West 
Springfield, Massachusetts 01090-0010, a registered holding company, 
its service company subsidiary, Northeast Utilities Service Company 
(``Service''), P.O. Box 270, Hartford, Connecticut 06141-0270, and its 
public utility subsidiary companies, Western Massachusetts Electric 
Company (``WMECO''), 174 Brush Hill Avenue, West Springfield, 
Massachusetts, 01090-0010; The Connecticut Light and Power Company 
(``CL&P''), Northeast Nuclear Energy Company (``NNECO'') and Yankee 
Energy System, Inc. (``YES''), all located at 107 Selden Street, 
Berlin, Connecticut 06037; Yankee Gas Services Company (``Yankee 
Gas''), 599 Research Parkway, Meriden, Connecticut 06450; Holyoke Water 
Power Company (``HWP''), Canal Street, Holyoke, Massachusetts 01040; 
and Public Street Company of New Hampshire (``PSNH'') and North 
Atlantic Energy Corporation (``NAEC''), both located at 1000 Elm 
Street, Manchester, New Hampshire 03015; (together, ``Applicants'') 
have filed an application-declaration under sections 6(a), 7, 9(a), 10, 
12(b), 13, 32 and 33 of the Act and rules 43, 45, 52, 90 and 91 under 
the Act.
    By order dated December 28, 1994 (HCAR No. 26207) and Supplemental 
Orders dated November 20, 1996 (HCAR 26612), February 11, 1997 (HCAR 
26665), March 25, 1997 (HCAR 26692), May 29, 1997 (HCAR 26721), January 
16, 1998 (HCAR 26816), May 13, 1999 (HCAR 27022), November 17, 1999 
(HCAR 27103) and November 13, 2000 (HCAR No. 27275) (collectively, the 
``Prior Orders''), the Commission authorized through December 31, 2000 
(``Authorization Period''), among other

[[Page 75323]]

things, (1) NU to issue and sell unsecured short-term notes and 
commercial paper and to make loans to participants in the NU system 
money pool (``Money Pool''); (2) Service to administer the Money Pool 
in accordance with the authority granted in the Prior Orders; (3) 
WMECO, CL&P, NNECO, YES, Yankee Gas, HWP, PSNH and NAEC (together, the 
``Utility Subsidiaries'') to issue and sell unsecured short-term notes; 
(4) WMECO, CL&P, Yankee Gas and PSNH to issue and sell commercial 
paper; and (5) WMECO, CL&P, NNECO, YES, Yankee Gas and HWP to borrow 
from NU and each other, and to lend to each other, all under the Money 
Pool (``Short-Term Debt Authority''). The Prior Orders limited the 
Applicants' Short-Term Debt Authority, as appropriate, to any 
combination of notes, commercial paper or Money borrowings outstanding 
at any one time in aggregate amounts of $400 million for NU, $250 
million for WMECO, $375 million for CL&P, $75 million for NNECO, $50 
million for YES, $100 million for Yankee Gas, $5 million for HWP, $225 
million for PSNH and $260 million for NAEC (``Debt Limitation'').\1\
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    \1\ CL&P, WMECO, PSNH and NAEC are currently subject to charter 
limitations and/or state laws that would prevent them from incurring 
short-term debt up to their Debt Limitation.
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    The Applicants now request that the Commission modify and supersede 
the Prior Orders to extend the Authorization Period from December 31, 
2000 to June 30, 2003 (``New Authorization Period'').\2\ The Applicants 
request further that the Short-Term Debt Authority, subject to the Debt 
Limitation, be extended through the New Authorization Period. The 
Applicants propose that short-term borrowings will take the form of 
notes to banks and other financial institutions (``Notes''), commercial 
paper (``Paper''), loans and open-account advances from NU to the 
Utility Subsidiaries and Money Pool borrowings.
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    \2\ On January 20, 2000 (S.E.C. File 70-9613), NU and 
Consolidated Edison, Inc. (``CEI'') requested that the Commission 
approve the terms of an Agreement and Plan of Merger to merge the 
two companies, resulting in NU becoming a wholly owned subsidiary of 
CEI. Subsequently, on June 30, 2000 (S.E.C. File 70-9711) 
(``Financing Order''), NU and CEI requested that the Commission 
approve certain financing activities for the combined companies, 
including authority for NU system companies to issue and sell short-
term debt and participate in the Money Pool. The Applicants propose 
that the authority granted in the Prior Orders, as modified and 
extended in this matter, be superseded by the authority requested in 
the Financing Order.
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    In particular, the Applicants propose that any Notes issued by NU 
or the Utility Subsidiaries will bear interest at a rate not exceeding 
500 basis points over the base rate in effect from time to time of the 
lending institutions or the base rate of a representative institution. 
The Notes may be secured or unsecured and will mature no later than 364 
days from the date of their issuance. The Applicants further propose 
that Paper issued by NU, WMECO, CL&P, Yankee Gas and PSNH (``Issuers'') 
will be issued at rates not exceeding the annual rate prevailing at the 
time of issuance for commercial paper of comparable qualities and 
maturities. The Paper will mature no later than 270 days from the date 
of issuance and will not be repayable prior to maturity. The Applicants 
state that each of the Issuers will not issue Paper unless the 
effective cost of Paper will be equal to or less than that for the 
issuance of Notes in an amount at least equal to the principal amount 
of Paper proposed to be issued.
    The Applicants finally propose, through the New Authorization 
Period, that the Utility Subsidiaries be authorized to borrow from NU 
and each other, and to lend each other, all under the Money Pool and 
subject to the Debt Limitation.\3\ Service will continue to administer 
the Money Pool under the same terms and conditions approved by the 
Commission in the Prior Orders. The Applicants state that all other 
terms, conditions, limitations and reporting obligations contained in 
the Prior Orders will apply to the proposed transactions.
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    \3\ Currently, an order of the Massachusetts Department of 
Telecommunications and Energy limits WMECO's authority to make loans 
under the Money Pool to CL&P and HWP and three nonutility 
subsidiaries. WMECO has requested that the Commission reserve 
jurisdiction over its authority to lend to other Money Pool 
participants, pending completion of the record. PSNH may not lend to 
the Money Pool participants under a New Hampshire Public Utilities 
Commission (``NHPUC'') order authorizing such lending, subject to 
the elimination of certain write-offs associated with restructuring 
mandated by the NHPUC. WMECO and PSNH may borrow from the Money 
Pool.

    For the Commission, by the Division of Investment Management, 
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 00-30663 Filed 11-30-00; 8:45 am]
BILLING CODE 8010-01-M