[Federal Register Volume 66, Number 90 (Wednesday, May 9, 2001)]
[Notices]
[Pages 23747-23748]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-11707]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 35-27394]


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

May 4, 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 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 May 24, 2001, 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 May 24, 2001, the application(s) and/or 
declaration(s), as filed or as amended, may be granted and/or permitted 
to become effective.

Northeast Utilities (70-9853

    Northeast Utilities (``NU''), 174 Brush Hill Road, West 
Springfield, Massachusetts 01089, a registered holding company, has 
filed a declaration under sections 6(a), 7, and 12(b) and rules 45 and 
54 under the Act.
    By prior Commission orders dated November 9, 1988, December 20, 
1990, December 3, 1992, and December 29, 1994 (HCAR Nos. 24742, 25219, 
25692, and 26208, respectively) (collectively, ``Prior Orders''), 
Holyoke Water Power Company (``HWP''), a utility subsidiary of NU, was 
authorized, among other things, to issue and sell notes, in an 
aggregate outstanding amount not exceeding $38.3 million, in connection 
with the issuance and sale of pollution control revenue bonds 
(``Bonds'') and to enter into a series of related reimbursement 
agreements (``Reimbursement Agreements'') with various banking 
institutions (``Banks'') in exchange for the issuance of irrevocable 
letters of credit (``LOCs''). In addition, in connection with each of 
the Reimbursement Agreements, NU entered into equity support agreements 
on behalf of HWP. These agreements were in the nature of contractual 
undertakings on the part of NU to maintain specified ownership levels 
in HWP and to cause HWP to maintain a minimum common equity to 
capitalization ratio.
    In accordance with provisions in each of the Reimbursement 
Agreements, HWP agreed, among other things, that, so long as the LOCs 
were outstanding, HWP would not allow the ratio of its common equity to 
total capitalization to fall below 30%. As of December 31, 2000, HWP 
recognized a reduction in the carrying value of certain of its assets. 
Accordingly, its common equity ratio failed to meet certain 
consolidated common equity maintenance covenants contained in each of 
the Reimbursement Agreements. The Banks have consented to the decline 
in HWP's common equity ratio provided that NU provide further 
assurances that HWP will meet its obligations under the Reimbursement 
Agreements.
    Consequently, NU now proposes, through June 30, 2004 
(``Authorization Period'') to issue guarantees and other forms of 
credit support (collectively, ``Guarantees''), in an aggregate amount 
not to exceed $45 million, in order to guarantee HWP's obligations 
under the Reimbursement Agreements. NU states that the Guarantees may 
take the form of NU agreeing to undertake reimbursement obligations or 
to assume liabilities or other obligations with respect to the LOCs. NU 
also states that the Guarantees will be without recourse to any other 
operating company in the NU system.


[[Page 23748]]


    For the Commission, by the Division of Investment Management, 
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 01-11707 Filed 5-8-01; 8:45 am]
BILLING CODE 8010-01-M