Edgar Filing: UNITIL CORP

ANNUAL REPORT

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM U-13-60

ANNUAL REPORT

For the Year Ended December 31, 2003

UNITIL RESOURCES, INC.

6 Liberty Lane West, Hampton, New Hampshire 03842-1720


Date of Incorporation		May 26, 1993
State of Incorporation		New Hampshire

Name, Title and address of officer to whom correspondence concerning this report should be addressed:

Laurence M. Brock, Controller & Treasurer

6 Liberty Lane West

Hampton, New Hampshire 03842-1720

Name of Principal Holding Company:

UNITIL Corporation

(1)

This report is being filed pursuant to the requirements of H.C.A.R. Number 35-25816, which specifies that UNITIL Resources, Inc. must file an annual report using, where applicable, Form U-13-60 reporting format.

ANNUAL REPORT OF UNITIL RESOURCES, INC.

For the Year Ended December 31, 2003

LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNTS


Description of Schedules and Accounts	Schedule or Account Number	Page Number
COMPARATIVE BALANCE SHEET	Schedule I	4-5
COMPANY PROPERTY	Schedule II	6-7
ACCUMULATED PROVISION FOR DEPRECIATION AND AMORTIZATION OF COMPANY PROPERTY	Schedule III	8
INVESTMENTS	Schedule IV	9
ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES	Schedule V	10
FUEL STOCK EXPENSES UNDISTRIBUTED	Schedule VI	11
STORES EXPENSE UNDISTRIBUTED	Schedule VII	12
UNBILLED AND ACCRUED REVENUE	Schedule VIII	13
MISCELLANEOUS DEFERRED DEBITS	Schedule IX	14
RESEARCH, DEVELOPMENT, OR DEMONSTRATION EXPENDITURES	Schedule X	15
PROPRIETARY CAPITAL	Schedule XI	16
LONG-TERM DEBT	Schedule XII	17
CURRENT AND ACCRUED LIABILITIES	Schedule XIII	18
NOTES TO FINANCIAL STATEMENTS	Schedule XIV	19
COMPARATIVE INCOME STATEMENT	Schedule XV	20
ANALYSIS OF BILLING - ASSOCIATE COMPANIES	Account 451	21
ANALYSIS OF BILLING - NONASSOCIATE COMPANIES	Account 451	22
ANALYSIS OF CHARGES FOR SERVICE - ASSOCIATE AND NONASSOCIATE COMPANIES	Schedule XVI	23
SCHEDULE OF EXPENSE BY DEPARTMENT OR FUNCTION	Schedule XVII	24
NOTES TO STATEMENT OF INCOME	Schedule XVIII	25
DEPARTMENTAL ANALYSIS OF SALARIES	Account 920	26
OUTSIDE SERVICES EMPLOYED	Account 923	27
EMPLOYEE PENSIONS AND BENEFITS	Account 926	28
GENERAL ADVERTISING EXPENSES	Account 930.1	29
MISCELLANEOUS GENERAL EXPENSES	Account 930.2	30
RENTS	Account 931	31
TAXES OTHER THAN INCOME TAXES	Account 408	32
DONATIONS	Account 426.1	33
OTHER DEDUCTIONS	Account 426.5	34

ANNUAL REPORT OF UNITIL RESOURCES, INC.

For the Year Ended December 31, 2003

LISTING OF INSTRUCTIONAL FILING REQUIREMENTS


Description of Reports or Statements		Page Number
ORGANIZATION CHART		35
METHODS OF ALLOCATION		36
ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED		36
SIGNATURE CLAUSE		37

ANNUAL REPORT OF UNITIL RESOURCES, INC.

For the Year Ended December 31, 2003

SCHEDULE I - COMPARATIVE BALANCE SHEET

Give balance sheet of the Company as of December 31 of the current and prior year.


		AS OF DECEMBER 31
ACCOUNT	ASSETS AND OTHER DEBITS	CURRENT			PRIOR
	COMPANY PROPERTY
101	Company property (Schedule II)	$	1,527,070		$	1,260,463
107	Construction work in progress (Schedule II)		—			265,658

	Total Property		1,527,070			1,526,121

108	Less accumulated provision for depreciation and amortization of company
	property (Schedule III)		1,265,066			613,464

	Net Company Property		262,004			912,657

	INVESTMENTS
123	Investments in associate companies (Schedule IV)		—			—
124	Other investments (Schedule IV)		—			—

	Total investments		—			—

	CURRENT AND ACCRUED ASSETS
131	Cash		268,945			325,993
134	Special deposits		7,000			—
135	Working funds		—			—
136	Temporary cash investments (Schedule IV)		—			—
141	Notes receivable		—			—
143	Accounts receivable		274,842			318,908
144	Accumulated provision for uncollectable accounts		—			—
146	Accounts receivable from associate companies (Schedule V)		351,935			11,994
152	Fuel stock expense undistributed (Schedule VI)		—			—
154	Materials and supplies		—			—
163	Stores expense undistributed (Schedule VII)		—			—
165	Prepayments		(72	)		53,908
173	Unbilled and Accrued Revenues (Schedule VIII)		—			—

	Total Current and Accrued Assets		902,650			710,803

	DEFERRED DEBITS
181	Unamortized debt expense		—			—
184	Clearing accounts		—			—
186	Miscellaneous deferred debits (Schedule IX)		—			136,993
188	Research, development, or demonstration expenditures (Schedule X)		—			—
190	Accumulated deferred income tax		—			—

	Total Deferred Debits		—			136,993

	TOTAL ASSETS AND OTHER DEBITS	$	1,164,654		$	1,760,453

ANNUAL REPORT OF UNITIL RESOURCES, INC.

For the Year Ended December 31, 2003

SCHEDULE I - COMPARATIVE BALANCE SHEET


		AS OF DECEMBER 31
ACCOUNT	LIABILITIES AND PROPRIETARY CAPITAL	CURRENT			PRIOR
	PROPRIETARY CAPITAL
201	Common stock issued (Schedule XI)	$	100		$	100
207	Premium on common stock (Schedule XI)		9,900			9,900
211	Miscellaneous Paid in Capital		4,890,000			4,640,000
215	Appropriated retained earnings (Schedule XI)		—			—
216	Unappropriated retained earnings (Schedule XI)		(4,717,446	)		(4,085,470	)

	Total Proprietary Capital		182,554			564,530

	LONG-TERM DEBT
223	Advances from associate companies (Schedule XII)		—			—
224	Other long-term debt (Schedule XII)		—			—
225	Unamortized premium on long-term debt		—			—
226	Unamortized discount on long-term debt-debit		—			—

	Total Long-Term Debt		—			—

227	Obligations under capital leases - non-current		—			—

	CURRENT AND ACCRUED LIABILITIES
231	Notes payable		1,191,081			1,134,712
232	Accounts payable		41,288			135,612
233	Notes payable to associate		—			—
	companies (Schedule XIII)		—			—
234	Accounts payable to associate
	companies (Schedule XIII)		333,904			272,251
236	Taxes accrued		(612,344	)		(197,428	)
237	Interest accrued		—			—
238	Dividends declared		—			—
241	Tax collections payable		—			—
242	Miscellaneous current and accrued		—			—
	liabilities (Schedule XIII)		1,871			29,105
243	Obligations under capital leases - current		—			—

	Total Current and Accrued Liabilities		955,800			1,374,252

	DEFERRED CREDITS
253	Other deferred credits		—			—
255	Accumulated deferred investment tax credits		—			—

	Total Deferred Credits		—			—

282	ACCUMULATED DEFERRED INCOME TAXES		26,300			(178,329	)

	TOTAL LIABILITIES AND PROPRIETARY CAPITAL	$	1,164,654		$	1,760,453

ANNUAL REPORT OF UNITIL RESOURCES, INC.

For the Year Ended December 31, 2003

SCHEDULE II - COMPANY PROPERTY


	DESCRIPTION	BALANCE AT BEGINNING OF YEAR		ADDITIONS		RETIREMENTS OR SALES		OTHER CHANGES 1/		BALANCE AT CLOSE OF YEAR
ACCOUNT	COMPANY PROPERTY

301	ORGANIZATION

303	MISCELLANEOUS INTANGIBLE PLANT

304	LAND AND LAND RIGHTS

305	STRUCTURES AND IMPROVEMENTS

306	LEASEHOLD IMPROVEMENTS

307	EQUIPMENT 2/

308	OFFICE FURNITURE AND EQUIPMENT		—		—		—				—

309	AUTOMOBILES, OTHER VEHICLES AND RELATED GARAGE EQUIPMENT

310	AIRCRAFT AND AIRPORT EQUIPMENT

311	OTHER COMPANY PROPERTY 3/	$	1,260,463	$	266,607					$	1,527,070

	SUB-TOTAL		1,260,463		266,607		—		—		1,527,070

107	CONSTRUCTION WORK IN PROGRESS		265,658		—		—		265,658		—

	TOTAL	$	1,526,121	$	266,607	$	—	$	265,658	$	1,527,070

PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:

ANNUAL REPORT OF UNITIL RESOURCES, INC.

For the Year Ended December 31, 2003

SCHEDULE II - CONTINUED

SUBACCOUNTS ARE REQUIRED FOR EACH CLASS OF EQUIPMENT OWNED. THE COMPANY SHALL PROVIDE A LISTING BY SUBACCOUNT OF EQUIPMENT ADDITIONS DURING THE YEAR AND THE BALANCE AT THE CLOSE OF THE YEAR:


SUBACCOUNT DESCRIPTION	ADDITIONS	BALANCE AT CLOSE OF YEAR
NONE





TOTAL	—	—

DESCRIBE OTHER COMPANY PROPERTY:


NONE
Equipment	$	266,607	$	304,908
Software Licenses		—		1,209,266
Trademark		—		12,896




TOTAL	$	266,607	$	1,527,070

DESCRIBE CONSTRUCTION WORK IN PROGRESS:

Software Development

ANNUAL REPORT OF UNITIL RESOURCES, INC.

For the Year Ended December 31, 2003

SCHEDULE III

ACCUMULATED PROVISION FOR DEPRECIATION AND

AMORTIZATION OF COMPANY PROPERTY


ACCOUNT	DESCRIPTION	BALANCE AT BEGINNING OF YEAR		ADDITIONS CHARGED TO ACCOUNT 403		RETIREMENTS		OTHER CHANGES ADD (DEDUCT)1/		BALANCE AT CLOSE OF YEAR
301	ORGANIZATION

303	MISCELLANEOUS INTANGIBLE PLANT

304	LAND AND LAND RIGHTS

305	STRUCTURES AND IMPROVEMENTS

306	LEASEHOLD IMPROVEMENTS

307	EQUIPMENT 2/

308	OFFICE FURNITURE AND EQUIPMENT

309	AUTOMOBILES, OTHER VEHICLES AND RELATED GARAGE EQUIPMENT

310	AIRCRAFT AND AIRPORT EQUIPMENT

311	OTHER COMPANY PROPERTY 3/	$	613,464	$	651,602			$	—	$	1,265,066

	TOTAL	$	613,464	$	651,602	$	—	$	—	$	1,265,066

PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:

ANNUAL REPORT OF UNITIL RESOURCES, INC.

For the Year Ended December 31, 2003

SCHEDULE IV - INVESTMENTS


INSTRUCTIONS:		Complete the following schedule concerning investments. Under Account 124 “Other Investments” state each investment separately, with description, including, the name of issuing company, number of shares or principal amount Under Account 136, “Temporary Cash Investments”, list each investment separately.


ACCOUNT	DESCRIPTION	BALANCE AT BEGINNING OF YEAR		BALANCE AT CLOSE OF YEAR
123	INVESTMENT IN ASSOCIATE COMPANIES	$	—	$	—




124	OTHER INVESTMENTS		—		—




136	TEMPORARY CASH INVESTMENTS		—		—





	TOTAL	$	—	$	—

ANNUAL REPORT OF UNITIL RESOURCES, INC.

For the Year Ended December 31, 2003

SCHEDULE V - ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES


INSTRUCTIONS:		Complete the following schedule listing accounts receivable from each associate company. Where the company has provided accommodation or convenience payments for associate companies, a separate listing of total payments for each company, number of shares or principal amount associate company by subaccount should be provided.


ACCOUNT	DESCRIPTION	BALANCE AT BEGINNING OF YEAR		BALANCE AT CLOSE OF YEAR
146	ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES	$	—	$	—

	UNITIL Service Corp.		11,994		351,935



	TOTAL	$	11,994	$	351,935


ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS:		NONE

ANNUAL REPORT OF UNITIL RESOURCES, INC.

For the Year Ended December 31, 2003

SCHEDULE VI - FUEL STOCK EXPENSES UNDISTRIBUTED


INSTRUCTIONS:		Report the amount of labor and expenses incurred with respect to fuel stock expense during the year and indicate amount attributable to each associate company. Under the section headed “Summary” listed below give an overall report of the fuel functions performed by the company.


ACCOUNT	DESCRIPTION	LABOR		EXPENSE		TOTAL
152	FUEL STOCK EXPENSE UNDISTRIBUTED	$	—	$	—	$	—











	TOTAL	$	—	$	—	$	—



SUMMARY:		NOT APPLICABLE

ANNUAL REPORT OF UNITIL RESOURCES, INC.

For the Year Ended December 31, 2003

SCHEDULE VII - STORES EXPENSE UNDISTRIBUTED


INSTRUCTIONS:		Report the amount of labor and expenses incurred with respect to stores expense during the year and indicate amount attributable to each associate company.


ACCOUNT	DESCRIPTION	LABOR		EXPENSE		TOTAL
163	STORES EXPENSE UNDISTRIBUTED	$	—	$	—	$	—
















	TOTAL	$	—	$	—	$	—

ANNUAL REPORT OF UNITIL RESOURCES, INC.

For the Year Ended December 31, 2003

SCHEDULE VIII - UNBILLED AND ACCRUED REVENUE


INSTRUCTIONS:		Provide detail of items in this account. Items less than $10,000 may be grouped, showing the number of items in each group.


ACCOUNT	DESCRIPTION	BALANCE AT BEGINNING OF YEAR		BALANCE AT CLOSE OF YEAR
173	ACCRUED AND UNBILLED REVENUE	$	—	$	—





















	TOTAL	$	—	$	—

ANNUAL REPORT OF UNITIL RESOURCES, INC.

For the Year Ended December 31, 2003

SCHEDULE IX - MISCELLANEOUS DEFERRED DEBITS


INSTRUCTIONS:		Provide detail of items in this account. Items less than $10,000 may be grouped by class showing the number of items in each class.


ACCOUNT	DESCRIPTION	BALANCE AT BEGINNING OF YEAR		BALANCE AT CLOSE OF YEAR
186	MISCELLANEOUS DEFERRED DEBITS

	Software License Agreement	$	119,000	$	—
	Licensing		17,968		—
	Other		25		—



	TOTAL	$	136,993	$	—

ANNUAL REPORT OF UNITIL RESOURCES, INC.

For the Year Ended December 31, 2003

SCHEDULE X - RESEARCH, DEVELOPMENT OR DEMONSTRATION EXPENDITURES


INSTRUCTIONS:		Provide a description of each material research, development, or demonstration project which incurred costs by the company during the year.


ACCOUNT	DESCRIPTION	BALANCE AT CLOSE OF YEAR
188	RESEARCH, DEVELOPMENT OR DEMONSTRATION EXPENDITURES	$	—




	TOTAL	$	—

ANNUAL REPORT OF UNITIL RESOURCES, INC.

For the Year Ended December 31, 2003

SCHEDULE XI - PROPRIETARY CAPITAL


INSTRUCTIONS:		Classify amounts in each account with brief explanation, disclosing the general nature of transactions which gave rise to the reported amounts.

ACCOUNT

CLASS OF STOCK

NUMBER OF
SHARES
AUTHORIZED

PAR OR STATED
VALUE
PER SHARE

OUTSTANDING
CLOSE OF PERIOD

NO. OF
SHARES

TOTAL
AMOUNT

201

COMMON STOCK ISSUED

10,000

1.00

100


ACCOUNT	DESCRIPTION	AMOUNT
207	PREMIUM ON COMMON STOCK	$	9,900
211	MISCELLANEOUS PAID IN CAPITAL		4,890,000
215	APPROPRIATED RETAINED EARNINGS

	TOTAL	$	4,899,900


ACCOUNT	DESCRIPTION	BALANCE AT BEGINNING OF YEAR			NET INCOME OR (LOSS)			DIVIDENDS PAID		BALANCE AT CLOSE OF YEAR
216	UNAPPROPRIATED RETAINED EARNINGS	$	(4,085,470	)	$	(631,976	)	$	—	$	(4,717,446	)

	TOTAL	$	(4,085,470	)	$	(631,976	)	$	—	$	(4,717,446	)

ANNUAL REPORT OF UNITIL RESOURCES, INC.

For the Year Ended December 31, 2003

SCHEDULE XII - LONG-TERM DEBT


INSTRUCTIONS:		Advances from associate companies should be reported separately for advances on notes, and advances on open account. Names of associate companies from which advances were received shall be shown under the class and series of obligation column. For Account 224 - Other long-term debt provide the name of creditor company or organization, terms of the obligation, date of maturity, interest rate, and the amount authorized and outstanding.


ACCOUNT	DESCRIPTION	NAME OF CREDITOR	TERMS OF OBLIG CLASS & SERIES OF OBLIGATION	DATE OF MATURITY	INTEREST RATE	AMOUNT AUTHORIZED	BALANCE AT BEGINNING OF YEAR		ADDITIONS		1/ DEDUCTIONS		BALANCE AT CLOSE OF YEAR
223	ADVANCES FROM ASSOCIATE COMPANIES	ADVANCES FROM ASSOCIATE					$	—	$	—	$	—	$	—





224	OTHER LONG-TERM DEBT:							—		—		—		—






							$	—	$	—	$	—	$	—

GIVE AN EXPLANATION OF DEDUCTIONS:

ANNUAL REPORT OF UNITIL RESOURCES, INC.

For the Year Ended December 31, 2003

SCHEDULE XIII - CURRENT AND ACCRUED LIABILITIES


INSTRUCTIONS:		Provide balance of notes and accounts payable to each associate company. Give description and amount of miscellaneous current and accrued liabilities. Items less than $10,000 may be grouped, showing the number of items in each group.


ACCOUNT	DESCRIPTION	BALANCE AT BEGINNING OF YEAR		BALANCE AT CLOSE OF YEAR
233	NOTES PAYABLE TO ASSOCIATE COMPANIES
	Cashpool	$	1,134,712	$	1,191,081


	TOTAL		1,134,712		1,191,081

234	ACCOUNTS PAYABLE TO ASSOCIATE COMPANIES
	UNITIL Service Corp.		272,251		333,904


	TOTAL		272,251		333,904

242	MISCELLANEOUS CURRENT AND ACCRUED LIABILITIES
	Accrued Expenses		29,105		1,871


	TOTAL	$	29,105	$	1,871

ANNUAL REPORT OF UNITIL RESOURCES, INC.

For the Year Ended December 31, 2003

SCHEDULE XIV - NOTES TO FINANCIAL STATEMENTS


INSTRUCTIONS:		The space below is provided for important notes regarding the financial statements or any account thereof. Furnish particulars as to any significant contingent assets or liabilities existing at the end of the year. Notes relating to financial statements shown elsewhere in this report may be indicated here by reference.

Selected Notes to the Financial Statements:

UNITIL Resources, Inc. (URI) is the Company’s wholly-owned non-utility subsidiary and has been authorized by the Securities and Exchange Commission, pursuant to the rules and regulations of the 1935 Act, to engage in business transactions as a competitive marketer of electricity, gas and other energy commodities in wholesale and retail markets, and to provide energy brokering, consulting and management related services within the United States. Usource, Inc. and Usource L.L.C. (Usource) are wholly-owned subsidiaries of Unitil Resources, Inc. Usource provides energy brokering services, as well as related energy consulting services.

Please refer to the 2003 Unitil Corporation Form 10-K for additional disclosures.

ANNUAL REPORT OF UNITIL RESOURCES, INC.

For the Year Ended December 31, 2003

SCHEDULE XV - STATEMENT OF INCOME


ACCOUNT	DESCRIPTION	CURRENT YEAR			PRIOR YEAR
	INCOME
451	Service revenue	$	1,147,964		$	755,647
451.01	Accrued and unbilled service revenue
419	Interest Income		832			7,014
421	Miscellaneous income or loss

	Total Income		1,148,796			762,661

	EXPENSE
920	Salaries and wages		—			—
921	Office supplies and expenses		126,987			212,771
922	Administrative expense transferred - credit		—			—
923	Outside services employed		1,443,742			1,432,307
924	Property insurance		—			—
925	Injuries and damages		863			2,101
926	Employee pensions and benefits		—			—
928	Regulatory commission expense		—			—
930.1	General advertising expense		8,727			9,132
930.2	Miscellaneous general expense		11,927			(875	)
931	Rents		—			—
932	Maintenance of structures and equipment		—			—
403	Depreciation and amortization expense		669,570			197,860
408	Taxes other than income taxes		1,395			1,300
409	Income taxes		(612,344	)		(487,895	)
410	Provision for deferred income taxes		21,595			(37,492	)
411	Provision for deferred income taxes - credit		—			—
411.5	Investment tax credit		—			—
426.1	Penalties		205			19,902
426.5	Other deductions		50			5
427	Interest on long-term debt		—			—
430	Interest on debt to associate companies		22,840			24,620
431	Other interest expense		—			—
555	Purchase Power Expense		(4,785	)		(4,833	)
904	Customer Accounting		90,000			57,889

	Total Expense		1,780,772			1,426,792

	Net Income or (Loss)	$	(631,976	)	$	(664,131	)

ANNUAL REPORT OF UNITIL RESOURCES, INC.

For the Year Ended December 31, 2003

ANALYSIS OF BILLING ASSOCIATE COMPANIES - ACCOUNT 451

NAME OF ASSOCIATE COMPANY

DIRECT
COSTS
CHARGED

INDIRECT
COSTS
CHARGED

COMPENSATION
FOR USE

OF CAPITAL

TOTAL
AMOUNT

BILLED

NONE

TOTAL

—

ANNUAL REPORT OF UNITIL RESOURCES, INC.

For the Year Ended December 31, 2003

ANALYSIS OF BILLING NONASSOCIATE COMPANIES - ACCOUNT 451


NAME OF NONASSOCIATE COMPANY	DIRECT CHARGES		INDIRECT CHARGES		COMPENSATION FOR USE OF CAPITAL		TOTAL CHARGES		EXCESS OR DEFICIENCY		TOTAL AMOUNT BILLED
Usource (a)	$	1,147,964	$	—	$	—	$	1,147,964	$	—	$	1,147,964









TOTAL	$	1,147,964	$	—	$	—	$	1,147,964	$	—	$	1,147,964

INSTRUCTION: Provide a brief description of the services rendered to each nonassociate company.

(a)

Brokering fees.

ANNUAL REPORT OF UNITIL RESOURCES, INC.

For the Year Ended December 31, 2003

SCHEDULE XVI - ANALYSIS OF CHARGES FOR SERVICE - ASSOCIATE AND NONASSOCIATE COMPANIES


		ASSOCIATE COMPANY CHARGES			NONASSOCIATE COMPANY CHARGES			TOTAL CHARGES FOR SERVICE
ACCOUNT NUMBER	DESCRIPTION OF ITEMS	DIRECT COST	INDIRECT COST	TOTAL	DIRECT COST	INDIRECT COST	TOTAL	DIRECT COST	INDIRECT COST	TOTAL
		Non-applicable
920	SALARIES AND WAGES			—			—	—	—	—
921	OFFICE SUPPLIES AND EXPENSES			—			—	—	—	—
922	ADMIN EXPENSE TRANS-CREDIT			—			—	—	—	—
923	OUTSIDE SERVICES EMPLOYED			—			—	—	—	—
924	PROPERTY INSURANCE			—			—	—	—	—
925	INJURIES AND DAMAGES			—			—	—	—	—
926	EMPLOYEE PENSIONS AND BENEFITS			—			—	—	—	—
928	REGULATORY COMMISSION EXPENSE			—			—	—	—	—
930.1	GENERAL ADVERTISING EXPENSE			—			—	—	—	—
930.2	MISC. GENERAL EXPENSE			—			—	—	—	—
931	RENTS			—			—	—	—	—
932	MAINT. OF STRUCT. & EQUIP.			—			—	—	—	—
403	DEPR. AND AMORT. EXPENSE			—			—	—	—	—
408	TAXES OTHER THAN INCOME			—			—	—	—	—
409	INCOME TAXES			—			—	—	—	—
410	PROV FOR DEF INC TAXES			—			—	—	—	—
411	PROV FOR DEF INC TAX CREDIT			—			—	—	—	—
411.5	INVESTMENT TAX CREDIT			—			—	—	—	—
419	INTEREST INCOME			—			—	—	—	—
426.1	DONATIONS			—			—	—	—	—
426.5	OTHER DEDUCTIONS			—			—	—	—	—
427	INTEREST ON LONG-TERM DEBT			—			—	—	—	—
431	OTHER INTEREST EXPENSE			—			—	—	—	—
								—	—	—

	SUBTOTAL EXPENSES	—	—	—	—	—	—	—	—	—

COMPENSATION FOR USE OF EQUITY CAPITAL				—			—			—

430	INTEREST ON DEBT TO ASSOCIATE COMPANIES	—	—	—	—	—	—	—	—	—

	TOTAL EXPENSES	—	—	—	—	—	—	—	—	—

421	MISCELLANEOUS INCOME	—	—	—	—	—	—	—	—	—

	TOTAL COST OF SERVICE	—	—	—	—	—	—	—	—	—

ANNUAL REPORT OF UNITIL RESOURCES, INC.

For the Year Ended December 31, 2003

SCHEDULE XVII - SCHEDULE OF EXPENSE DISTRIBUTION BY DEPARTMENT OR FUNCTION


ACCOUNT NUMBER	DESCRIPTION OF ITEMS	TOTAL AMOUNT	OVERHEAD	DEPARTMENT OR FUNCTION
ACCOUNT NUMBER	DESCRIPTION OF ITEMS	TOTAL AMOUNT	OVERHEAD	NONE
920	SALARIES AND WAGES	—
921	OFFICE SUPPLIES AND EXPENSES	—		Non-applicable
922	ADMIN. EXPENSE TRANS-CREDIT	—
923	OUTSIDE SERVICES EMPLOYED	—
924	PROPERTY INSURANCE	—
925	INJURIES AND DAMAGES	—
926	EMPLOYEE PENSIONS AND BENEFITS	—
928	REGULATORY COMMISSION EXPENSE	—
930.1	GENERAL ADVERTISING EXPENSE	—
930.2	MISC. GENERAL EXPENSE	—
931	RENTS	—
932	MAINT. OF STRUCT. & EQUIP.	—
403	DEPR. AND AMORT. EXPENSE	—
408	TAXES OTHER THAN INCOME	—
409	INCOME TAXES	—
410	PROV. FOR DEF. INC. TAXES	—
411	PROV. FOR DEF. INC. TAX CREDIT	—
411.5	INVESTMENT TAX CREDIT	—
426.1	DONATIONS	—
426.5	OTHER DEDUCTIONS	—
427	INTEREST ON LONG-TERM DEBT	—
430	INTEREST ON DEBT TO ASSOCIATE COMPANIES	—
431	OTHER INTEREST EXPENSE	—

	TOTAL EXPENSES -	—	—	—	—	—	—

ANNUAL REPORT OF UNITIL RESOURCES, INC.

For the Year Ended December 31, 2003

SCHEDULE XVIII - NOTES TO STATEMENT OF INCOME


INSTRUCTIONS:		The space below is provided for important notes regarding the statement of income or any account thereof. Furnish particulars as to any significant increases in services rendered or expenses incurred during the year. Notes relating to financial statements shown elsewhere in this report may be indicated here by reference.

See page 19.

ANNUAL REPORT OF UNITIL RESOURCES, INC.

For the Year Ended December 31, 2003

DEPARTMENTAL ANALYSIS OF SALARIES - ACCOUNT 920


	DEPARTMENTAL SALARY EXPENSE				NUMBER PERSONNEL END OF YEAR
		INCLUDED IN AMOUNTS BILLED TO
NAME OF DEPARTMENT (Indicate each department or function)	TOTAL AMOUNT	PARENT COMPANY	OTHER ASSOCIATES	NON ASSOCIATES
Non-applicable














TOTAL	0	0	0	0	0

ANNUAL REPORT OF UNITIL RESOURCES, INC.

For the Year Ended December 31, 2003

OUTSIDE SERVICES EMPLOYED - ACCOUNT 923


INSTRUCTIONS:		Provide a breakdown by subaccount of outside services employed. If the aggregate amounts paid to any one payee and included within one subaccount is less than $100,000, only the aggregate number and amount of all such payments included within the subaccount need be shown. Provide a subtotal for each type of service.


FROM WHOM PURCHASED	ADDRESS	RELATIONSHIP “A”= ASSOCIATE “NA”=NON ASSOCIATE	AMOUNT
Outside Services
UNITIL Service Corp.		A	$	1,181,430


Outside Services - Legal
Various		NA		10,967


Outside Services - Other
Various		NA		251,345



TOTAL			$	1,443,742

ANNUAL REPORT OF UNITIL RESOURCES, INC.

For the Year Ended December 31, 2003

EMPLOYEE PENSIONS AND BENEFITS - ACCOUNT 926


INSTRUCTIONS:		Provide a listing of each pension plan and benefit program provided by the service company. Such listing should be limited to $25,000.


DESCRIPTION	AMOUNT
Health Insurance	$	—
Net Periodic Pension Expense		—
401K		—
Life Insurance		—
Other

TOTAL	$	—

ANNUAL REPORT OF UNITIL RESOURCES, INC.

For the Year Ended December 31, 2003

GENERAL ADVERTISING EXPENSES - ACCOUNT 930.1


INSTRUCTIONS:		Provide a listing of the amounts included in Account 930.1 “General Advertising Expenses,” classifying the items according to the nature of the advertising and as defined in the account definition. If a particular class included an amount in excess of $3,000 applicable to a single payee, show separately the name of the payee and the aggregate amount applicable thereto.


DESCRIPTION	NAME OF PAYEE	AMOUNT
Advertising	Adventures in Advertising	$	2,077
	Image 4		3,796
	MassPlastics		1,600
	Other		1,254




	TOTAL	$	8,727

ANNUAL REPORT OF UNITIL RESOURCES, INC.

For the Year Ended December 31, 2003

MISCELLANEOUS GENERAL EXPENSES

ACCOUNT 930.2


INSTRUCTIONS:		Provide a listing of the amount included in Account 930.02 “Miscellaneous General Expense”, classifying such expenses according to their nature. Payments and expenses permitted by Section 321 (b) (2) of the Federal Election Campaign Act, as amended by Public Law 94-283 in 1976 (2 U.S.C. 441 (b) (2) shall be separately classified.


DESCRIPTION	AMOUNT
Other	$	11,927




TOTAL	$	11,927

ANNUAL REPORT OF UNITIL RESOURCES, INC.

For the Year Ended December 31, 2003

RENTS

ACCOUNT 931

INSTRUCTIONS:

Provide a listing of the amount included in Account 931, “Rents”

classifying such expenses by major groupings of property, as

defined in the account definition of the Uniform System of Accounts.


TYPE OF PROPERTY	AMOUNT
Not Applicable




TOTAL	$	—

ANNUAL REPORT OF UNITIL RESOURCES, INC.

For the Year Ended December 31, 2003

TAXES OTHER THAN INCOME TAXES

ACCOUNT 408


INSTRUCTIONS:		Provide an analysis of Account 408, “Taxes Other Than Income Taxes”. Separate the analysis into two groups: (1) other than U. S. Government and (2) U.S. Government taxes. Specify each of the various kinds of taxes and show the amounts there of. Provide a subtotal for each class of tax.


KIND OF TAX	AMOUNT
Other than U.S. Government Tax:
NH BET Tax	$	1,395



TOTAL	$	1,395

ANNUAL REPORT OF UNITIL RESOURCES, INC.

For the Year Ended December 31, 2003

DONATIONS

ACCOUNT 426.1


INSTRUCTIONS:		Provide a listing of the amount included in Account 426.1, “Donations”, classifying such expenses by its purpose. The aggregate number and amount of all items of less than $3,000 may be shown in lieu of details.


NAME OF RECIPIENT	PURPOSE OF DONATION	AMOUNT
Tax Penalties		$	50


TOTAL		$	50

ANNUAL REPORT OF UNITIL RESOURCES, INC.

For the Year Ended December 31, 2003

OTHER DEDUCTIONS

ACCOUNT 426.5


INSTRUCTIONS:		Provide a listing of the amount included in Account 426.5, “Other Deductions”, classifying such expenses according to their nature.


DESCRIPTION	NAME OF PAYEE	AMOUNT
Commission of Revenue		$	205



TOTAL		$	205

ANNUAL REPORT OF UNITIL RESOURCES, INC.

For the Year Ended December 31, 2003

ORGANIZATION CHART

Organization Chart as of December 31, 2003


President		Todd R. Black
Controller & Treasurer		Laurence M. Brock
Asst. Treasurer		Charles J. Kershaw, Jr.
Secretary		Raymond J. Morrissey

ANNUAL REPORT OF UNITIL RESOURCES, INC.

For the Year Ended December 31, 2003

METHODS OF ALLOCATION

SEE UNITIL SERVICE CORP. U-13-60

ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED

Non applicable

ANNUAL REPORT OF UNITIL RESOURCES, INC.

For the Year Ended December 31, 2003

SIGNATURE CLAUSE

Pursuant to the requirements of the Public Utility Holding Company Act of 1935 and the rules and regulations of the Securities and Exchange Commission issued thereunder, the undersigned company has duly caused this report to be signed on its behalf by the undersigned officer thereunto duly authorized,

UNITIL Resources, Inc.

(Name of Reporting Company)

By: /s/ Laurence M. Brock

Laurence M. Brock, Controller and Treasurer

Date: April 20, 2004

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