[Federal Register Volume 66, Number 170 (Friday, August 31, 2001)]
[Notices]
[Pages 46040-46041]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-22014]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 35-27434]


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

August 27, 2001.
    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 transactions(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 September 21, 2001, to the Secretary, Securities and 
Exchange Commission, Washington, DC 20549-0609, and serve a copy on the 
relevant applicant(s) and/or declaration(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 is 
issued in the matter. After September 21, 2001, the application(s) and/
or declaration(s), as filed or as amended, may be granted and/or 
permitted to become effective.

Connecticut Light and Power Company (70-9905)

    The Connecticut Light and Power Company (``CL&P''), a wholly owned 
electric utility subsidiary of Northeast Utilities (``NU''), a public 
utility holding company, and CL&P Receivables Corporation (``CRC''), a 
wholly-owned special purpose subsidiary of CL&P, both located at 107 
Selden Street, Berlin, Connecticut 06037-5457, have filed a declaration 
under section 12(c) and rules 46 and 54 of the Act.
    By order dated September 29, 1997 (HCAR No. 26761) (``1997 
Order''), the Commission authorized CL&P to engage in five transactions 
in connection with its receivables program (``Program''). Under the 
1997 Order, authority was granted for (i) CL&P to organize CRC, (ii) 
CRC to issue shares of common stock, (iii) CL&P to acquire shares of 
CRC common stock, (iv) CL&P to make, directly and indirectly, initial 
and general equity contributions to CRC, and (v) CRC to pay dividends 
to CL&P from time to time out of capital to achieve the optimum balance 
of capital to achieve economic efficiency. Transactions (i) through 
(iv) (with respect to initial equity contributions) have been 
undertaken and by their nature are permanent, while (v) by its nature 
is an ongoing process as the Program moves forward. The Program was 
scheduled to expire on July 11, 2001 and was suspended on that date. In 
order to extend the Program beyond July 11, 2001, CL&P is now seeking 
authority to continue the actions set forth in (v) above, and any other 
aspect of the proposed transactions for which approval may be 
necessary, through July 8, 2004, the proposed date of expiration of the 
extended Program.
    The Programs consists of two agreements. As extended to July 8, 
2004, the Program will continue in place with the same provisions set 
present. The principal features of the Program are as follows: under 
the first agreement, between CL&P and CRC (``Company Agreement''), CL&P 
sells or transfers as equity contributions from time to time

[[Page 46041]]

all eligible categories of its billed and unbilled accounts received 
(``Receivables'') and related assets (``Related Assets'') to CRC. The 
purchase price paid by CRC for any Receivables and Related Assets takes 
into account historical loss statistics on CL&P's receivables pool and 
the purchaser's (``Purchaser'') cost of funds. Under the second 
agreement (``CRC Agreement''), CRC sells fractional undivided interests 
(``Receivable Interests'') in the Receivables to the Purchaser from 
time to time.
    The availability of Receivables and Related Assets varies from time 
to time in accordance with electric energy use by CL&P's customers. As 
a result of this and certain other factors, the funds CRC has available 
to make a purchase at any time may not match the cost of Receivables 
and Related Assets available. The Program includes certain mechanisms 
to accommodate this mismatch. When the amount of Receivables and 
Related Assets originated by CL&P exceeds the amount of cash CRC has 
available, either CRC will make the purchase and owe the balance of the 
purchase price to CL&P on a deferred basis (the unpaid portion will 
accrue interest or the purchase price will involve a discount to 
reflect the deferral), or CL&P will make a capital contribution to CRC 
in the form of the Receivables and Related Assets for which CRC lacks 
purchase price funds at that time. Conversely, if CRC develops a 
substantial cash balance (due to collections of previously transferred 
Receivables exceeding the balance of newly created Receivable available 
for purchase), CRC will likely dividend the excess cash to CL&P. These 
dividends may represent a return of previous capital contributions of 
CL&P to CRC. Through these mechanisms, CRC does not itself retain 
substantial cash balances at any time and substantially all cash 
realized from the collection of the Receivables (net of the costs of 
the program and any reductions in the outstanding balance of Receivable 
Interests) is made available to CL&P.
    CL&P and CRC will continue to be obligated to reimburse the 
Purchaser and its agent (``Agent'') for various costs and expenses 
associated with the Company Agreement and the CRC Agreement upon 
extension of the Program. CRC will also continue to be required to pay 
to the Agent certain fees for services in connection with these 
agreements.
    CL&P is working with the parties to the agreements to extend the 
Program through July 8, 2004. CRC may, following written notice to the 
Agent, terminate in whole or reduce in part the unused portion of its 
purchase limit in accordance with the terms and conditions of the CRC 
Agreement. The CRC Agreement allows the Purchaser to assign all of its 
rights and obligations under the CRC Agreement (including its 
Receivable Interests and the obligation to fund Receivable Interests) 
to other persons. However, any such assignments will not change the 
nature of the obligations of CL&P or CRC under the Company Agreement 
and the CRC Agreement.
    As described in the declaration, CL&P intends that the above-
described transactions will continue to accelerate the receipt of cash 
collections from accounts receivable in order to meet its short term 
cash needs.


    For the Commission, by the Division of Investment Management, 
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-22014 Filed 8-30-01; 8:45 am]
BILLING CODE 8010-01-M