SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM U-13-60

ANNUAL REPORT

For the Year Ended December 31, 2002

UNITIL SERVICE CORP.
6 Liberty Lane West, Hampton, New Hampshire 03842-1720

A Subsidiary Service Company

Date of Incorporation: October 9, 1984

State of Incorporation: New Hampshire

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

Mark H. Collin, Treasurer
6 Liberty Lane West
Hampton, NH 03842

Name of Principal Holding Company Whose Subsidiaries are served by Reporting Company:

UNITIL Corporation

LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNTS

	Schedule or Account	Page
Description of Schedules and Accounts	Account Number	Number
COMPARATIVE BALANCE SHEET	Schedule I	4-5
SERVICE COMPANY PROPERTY	Schedule II	6-7
ACCUMULATED PROVISION FOR DEPRECIATION AND AMORTIZATION OF SERVICE COMPANY PROPERTY	Schedule III	8
INVESTMENTS	Schedule IV	8
ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES	Schedule V	9-10
FUEL STOCK EXPENSES UNDISTRIBUTED	Schedule VI	11
STORES EXPENSE UNDISTRIBUTED	Schedule VII	11
MISCELLANEOUS CURRENT AND ACCRUED ASSETS	Schedule VIII	11
MISCELLANEOUS DEFERRED DEBITS	Schedule IX	12
RESEARCH, DEVELOPMENT, OR DEMONSTRATION EXPENDITURES	Schedule X	12
PROPRIETARY CAPITAL	Schedule XI	13
LONG-TERM DEBT	Schedule XII	14
CURRENT AND ACCRUED LIABILITIES	Schedule XIII	15
NOTES TO FINANCIAL STATEMENTS	Schedule XIV	16
COMPARATIVE INCOME STATEMENT	Schedule XV	17
ANALYSIS OF BILLING - ASSOCIATE COMPANIES	Account 457	18
ANALYSIS OF BILLING - NONASSOCIATE COMPANIES	Account 458	18
ANALYSIS OF CHARGES FOR SERVICE - ASSOCIATE
AND NONASSOCIATE COMPANIES	Schedule XVI	19
SCHEDULE OF EXPENSE BY DEPARTMENT OR SERVICE FUNCTION	Schedule XVII	20
DEPARTMENTAL ANALYSIS OF SALARIES	Account 920	21
OUTSIDE SERVICES EMPLOYED	Account 923	22
EMPLOYEE PENSIONS AND BENEFITS	Account 926	23
GENERAL ADVERTISING EXPENSES	Account 930.1	23
MISCELLANEOUS GENERAL EXPENSES	Account 930.2	24
RENTS	Account 931	24
TAXES OTHER THAN INCOME TAXES	Account 408	25
DONATIONS	Account 426.1	25
OTHER DEDUCTIONS	Account 426.5	25
NOTES TO STATEMENT OF INCOME	Schedule XVIII	26

LISTING OF INSTRUCTIONAL FILING REQUIREMENTS

Description of Reports or Statements	Page
ORGANIZATION CHART	26
METHODS OF ALLOCATION	27
ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED	27

SCHEDULE I - COMPARATIVE BALANCE SHEET

		AS OF DECEMBER 31
ACCOUNT	ASSETS AND OTHER DEBITS	CURRENT		PRIOR
	SERVICE COMPANY PROPERTY
101	Service company property (Schedule II)	10,115,307		10,829,741
107	Construction work in progress (Schedule II)			0
	Total Property	10,115,307		10,829,741
108	Less accumulated provision for depreciation and amortization of service company property (Schedule III)	5,130,631		4,599,580
	Net Service Company Property	4,984,676		6,230,161
	INVESTMENTS
123	Investments in associate companies (Schedule IV)	0		0
124	Other investments (ScheduleIV)	0		0
	Total investments	0		0
	CURRENT AND ACCRUED ASSETS
131	Cash	2,006,818		2,098,265
134	Special deposits	0		0
135	Working funds	6,000		6,000
136	Temporary cash investments (ScheduleIV)	0		0
141	Notes receivable	0		0
143	Accounts receivable	196,367		165,771
144	Accumulated provision for uncollectable accounts	0		0
146	Accounts receivable from associate Companies (Schedule V)	2,972,087		1,648,630
152	Fuel stock expense undistributed (Schedule VI)	0		0
154	Materials and supplies	0		0
163	Stores expense undistributed (Schedule VII)	0		0
165	Prepayments	225,914		189,181
174	Miscellaneous current and Accrued Assets (Schedule VII)	0		0
	Total Current and Accrued Assets	5,407,186		4,107,847
	DEFERRED DEBITS
181	Unamortized debt expense	0		0
184	Clearing accounts	31,582		11,366
186	Miscellaneous deferred debits (Schedule IX)	204,191		236,613
188	Research, development, demonstration expenditures (Schedule X)	0		0;
190	Accumulated deferred income tax	0		0
	Total Deferred Debits	235,773		247,979
	TOTAL ASSETS AND OTHER DEBITS	10,627,635		10,585,987

SCHEDULE I — COMPARATIVE BALANCE SHEET

		AS OF DECEMBER 31
ACCOUNT	LIABILITIES AND PROPRIETARY CAPITAL	CURRENT		PRIOR
	PROPRIETARY CAPITAL
201	Common stock issued (Schedule XI)	1,000		1,000
211	Miscellaneous paid-in-capital (Schedule XI)	0		0
215	Appropriated retained earnings (Schedule XI)	0		0
216	Unappropriated retained earnings (Schedule XI)	1,688		1,688
	Total Proprietary Capital	2,688		2,688
	LONG-TERM DEBT
223	Advances from associate companies (Schedule XII)	0		0
224	Other long-term debt (Schedule XII)	0		0
225	Unamortized premium on long- term debt	0		0
226	Unamortized discount on long-term debt-debit	0		0
	Total Long-Term Debt	0		0
227	Obligations under capital leases - non-current	881,021		1,239,380
	CURRENT AND ACCRUED LIABILITIES
231	Notes payable	0		0
232	Accounts payable	479,022		406,380
233	Notes payable to associate companies (Schedule XIII)	5,303,001		6,348,248
234	Accounts payable to associate companies (Schedule XIII)	(742,066)		(349,778)
236	Taxes accrued	(14,503)		(18,664)
237	Interest accrued	0		0
238	Dividends declared	0		0
241	Tax collections payable	0		0
242	Miscellaneous current and accrued Liabilities (Schedule XIII)	5,075,304		3,232,421
243	Obligations under capital leases - current	751,162		744,038
	Total and Accrued Liabilities	10,851,920		10,362,645
	DEFERRED CREDITS
253	Other deferred credits	0		0
255	Accumulated deferred investment tax credits	0		0
	Total Deferred Credits	0		0
282	ACCUMULATED DEFERRED INCOME TAXES	(1,107,994)		(1,018,726)
	TOTAL LIABILITIES AND PROPRIETARY CAPITAL	10,627,635		10,585,987

SCHEDULE II — SERVICE COMPANY PROPERTY

				BALANCE AT				RETIREMENTS		OTHER		BALANCE AT
				BEGINNING				OR		CHANGES		CLOSE OF
		DESCRIPTION		YEAR		ADDITIONS		SALES		1/		OF YEAR
		SERVICE COMPANY PROPERTY Account
301		ORGANIZATION
303		MISCELLANEOUS INTANGIBLE PLANT		4,382,833		0		0		0		4,382,833
304		LAND AND LAND RIGHTS
305		STRUCTURES AND IMPROVEMENTS
306		LEASEHOLD IMPROVEMENTS
307		EQUIPMENT 2/		5,283,177		423,758		(1,108,280	)	0		4,598,655
308		OFFICE FURNITURE AND EQUIPMENT		1,135,193		12,646		(42,558	)	0		1,105,281
309		AUTOMOBILES, OTHER VEHICLES AND RELATED GARAGE EQUIPMENT
				28,538		0		0		0		28,538
310		AIRCRAFT AND AIRPORT EQUIPMENT
311		OTHER SERVICE COMPANY PROPERTY 3/
		SUB-TOTAL		10,829,741		436,404		(1,150,838	)	0		10,115,307
107		CONSTRUCTION WORK IN PROGRESS		0		0
		TOTAL		10,829,741		436,404		(1,150,838	)	0		10,115,307

1/ PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:

SCHEDULE II — SERVICE COMPANY PROPERTY CONTINUED

2/  SUB-ACCOUNTS ARE REQUIRED FOR EACH CLASS OF EQUIPMENT OWNED. THE SERVICE COMPANY SHALL PROVIDE A LISTING BY SUBACCOUNT OF EQUIPMENT ADDITIONS DURING THE YEAR AND THE BALANCE AT THE CLOSE OF THE YEAR:

				BALANCE AT
SUBACCOUNT DESCRIPTION		ADDITIONS		CLOSE OF YEAR
Computer Systems		395,124		3,818,943
PBX Phone System		0		751,078
Power Quality Equipment		28,634		28,634
TOTAL		423,758		4,598,655

3/ DESCRIBE OTHER SERVICE COMPANY PROPERTY: NONE

4/ DESCRIBE CONSTRUCTION WORK IN PROGRESS: NONE

SCHEDULE III - ACCUMULATED PROVISION FOR DEPRECIATION AND AMORTIZATION OF SERVICE COMPANY PROPERTY

ACCOUNT		DESCRIPTION		BALANCE AT BEGINNING OF YEAR		ADDITIONS CHARGED TO ACCOUNT 403		RETIRE- MENTS		OTHER CHANGES ADD(DEDUCT)1/		BALANCE AT CLOSE OF YEAR
301		ORGANIZATION MISCELLANEOUS
303		INTANGIBLE PLANT		153,312		857,310		0		0		1,010,622
304		LAND AND LAND RIGHTS
305		STRUCTURES AND IMPROVEMENTS
306		LEASEHOLD IMPROVEMENTS
307		EQUIPMENT		3,636,140		609,898		(1,008,098	)	0		3,237,940
308		OFFICE FURNITURE AND EQUIPMENT		781,276		188,920		(127,890	)	0		842,306
309		AUTOMOBILES, OTHER VEHICLES AND RELATED GARAGE EQUIPMENT		28,852		10,911		0		0		39,763
310		AIRCRAFT AND AIRPORT EQUIPMENT
311		OTHER SERVICE COMPANY PROPERTY
		TOTAL		4,599,580		1,667,039		(1,135,988	)	0		5,130,631

1/ PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL: None

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		0		0
124		OTHER INVESTMENTS		0		0
136		TEMPORARY CASH INVESTMENTS		0		0
	TOTAL			0		0

SCHEDULE V — ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES

INSTRUCTIONS:

Complete the following schedule listing accounts receivable from each associate company. Where the service company has provided accommodation or convenience payments for associate companies, a separate listing of total payments for each 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
Concord Electric Company				228,483		751,939
Exeter & Hampton Electric Company				249,111		946,224
Fitchburg Gas and Electric Light Company				612,277		1,005,510
UNITIL Power Corp.				440,213		0
UNITIL Realty Corp.				31,807		1,614
UNITIL Corporation				3,342		1,315
UNITIL Resources, Inc.				83,397		265,485
TOTAL				1,648,630		2,972,087
ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS:
Concord Electric Company						725,598
Exeter & Hampton Electric Company						683,772
Fitchburg Gas and Electric Light Company						1,911,494
UNITIL Power Corp.						1,179,154
UNITIL Realty Corp.						22,018
UNITIL Resources, Inc.						1,475
Usource Inc.						34,050
UNITIL Corp.						13,293
For detail of convenience payments by type and company, paid by UNITIL Service Corp. see next page
				TOTAL PAYMENTS		4,570,854

CONVENIENCE PAYMENTS BY TYPE AND COMPANY

	CECO	E&H	FGE	UPC	URC	URI	Usource	UC	TOTAL
Insurance	518,141	478,458	891,973	70,083	21,755	393			1,980,803
Legal	132,597	139,163	930,867	1,077,809		763	12,894	13,255	2,307,348
Telephone	23,283	9,916	4,324				21,156		58,679
Payroll	17,950	22,814	24,733						65,497
Audit	27,683	28,468	40,837	31,262	263	319		38	128,870
Network/Hardware/Data Costs	5,944	4,953	18,760						29,657
Totals	725,598	683,772	1,911,494	1,179,154	22,018	1,475	34,050	13,293	4,570,854

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 service company.

ACCOUNT	DESCRIPTION	LABOR	EXPENSE	TOTAL
152	FUEL STOCK EXPENSE UNDISTRIBUTED	0	0	0
	TOTAL	0	0	0

SUMMARY:

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	0	0	0
TOTAL		0	0	0

SCHEDULE VIII — MISCELLANEOUS CURRENT AND ACCRUED ASSETS

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
174	MISCELLANEOUS CURRENT AND ACCRUED	0	0
	TOTAL	0	0

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 OFYEAR		BALANCE AT CLOSE OF YEAR
186       MISCELLANEOUS DEFERRED DEBITS
Under/(over) collected administrative expenses				2,586		(12,787	)
Postage				(24,363	)	3,104
Management Studies				0		0
Software Costs				258,390		213,874
TOTAL				236,613		204,191

SCHEDULE X — RESEARCH, DEVELOPMENT OR DEMONSTRATION EXPENDITURES

INSTRUCTIONS:

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

ACCOUNT	DESCRIPTION	BALANCE AT CLOSE OF YEAR
188	RESEARCH, DEVELOPMENT OR DEMONSTRATION EXPENDITURES	0
	TOTAL	0

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.

				OUTSTANDING CLOSE OF PERIOD
ACCOUNT	CLASS OF STOCK	NUMBER OF SHARES AUTHORIZED	PAR OR STATED VALUE PER SHARE	NO. OF SHARES	TOTAL AMOUNT
201	COMMON STOCK ISSUED	300	10.00	100	1,000

ACCOUNT	DESCRIPTION	BALANCE AT CLOSE OF YEAR
211	MISCELLANEOUS PAID-IN CAPITAL	0
215	APPROPRIATED RETAINED EARNINGS	0
	TOTAL	0

ACCOUNT	DESCRIPTION	BALANCE AT BEGINNING OF YEAR	NET INCOME OR (LOSS)	DIVIDENDS PAID	BALANCE AT CLOSE OF YEAR
216	UNAPPROPRIATED RETAINED EARNINGS	1,688	0	0	1,688
	TOTAL	1,688	0	0	1,688

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	NAME OF CREDITOR	TERMS OF OBLIG CLASS & SERIES OF OBLIGATION	DATE OF MATURITY	INTEREST RATE	AMOUNT AUTHORIZED	BALANCE AT BAGINNING OF YEAR	ADDITIONS	1/ DEDUCTIONS	BALANCE AT CLOSE OF YEAR
223	ADVANCES FROM ASSOCIATE COMPANIES					0	0	0	0
224	OTHER LONG-TERM DEBT:					0	0	0	0
						0	0	0	0

1/ GIVE AN EXPLANATION OF DEDUCTIONS:

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 Money Pool					6,348,248		5,303,001
TOTAL					6,348,248		5,303,001
233     ACCOUNTS PAYABLE TO ASSOCIATE COMPANIES
Concord Electric Company					(80,368	)	(133,725	)
Exeter & Hampton Electric Company					(64,871	)	(136,502	)
Fitchburg Gas and Electric Company					(138,395	)	(140,490	)
UNITIL Corporation (1)					(2,519	)	(7,621	)
UNITIL Power Corporation					(153,495	)	(316,815	)
UNITIL Realty Corporation					(197	)	(147	)
UNITIL Resources Inc					64,827		(22	)
Usource LLC					25,240		(6,744	)
(1) Balance consists of KESOP for UNITIL Service Employees only, not subsidiaries
TOTAL					(349,778	)	(742,066	)
242     MISCELLANEOUS CURRENT AND ACCRUED LIABILITIES
Accrued FASB 87					1,192,275		1,392,240
Accrued Supplemental Executive Retirement Plan					718,936		828,035
Accrued Legal Fees					0		0
Accrued Annual Report					26,760		51,088
Accrued FASB 106					167,901		208,929
Accrued FASB 106 - APBO					17,151		22,061
Accrued FASB 106 - Gain/Loss					(1,649	)	(1,649	)
Accrued Auditing					2,155		0
Accrued Compensation					1,066,135		1,041,886
Accrued Severance Costs					0		1,511,048
Accrued Miscellaneous Costs					42,757		21,666
					3,232,421		5,075,304

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 Service Corp. (USC), a wholly-owned subsidiary of UNITIL Corporation, a public utility holding company, provides centralized support services to the parent company and its subsidiaries. USC is subject to the jurisdiction of the Securities and Exchange Commission (SEC) under the Public Utility Holding Company Act of 1935. Accordingly, USC maintains its books of account as prescribed by the “Uniform System of Accounts for Mutual Service Companies and Subsidiary Service Companies” as Amended February 2, 1979 to be effective January 1, 1980. USC prepares its financial statements in conformity with generally accepted accounting principles.

Please refer to the 2002 UNITIL Corporation Form 10-K for additional disclosures.

SCHEDULE XV — STATEMENT OF INCOME

ACCOUNT		DESCRIPTION		CURRENT YEAR		PRIOR YEAR
	INCOME
457		Services rendered to associate companies		20,439,909		18,673,940
458		Services rendered to non-associate companies		30,000		30,000
419		Interest Income		0		0
421		Miscellaneous income or loss		(14,850	)	0
		Total Income		20,455,059		18,703,940
	EXPENSE
920		Salaries and wages		10,147,522		10,302,268
921		Office supplies and expenses		874,977		826,855
922		Administrative expense transferred - credit		(268,627	)	363,406
923		Outside services employed		678,283		492,410
924		Property insurance		6,548		4,478
925		Injuries and damages		44,864		53,150
926		Employee pensions and benefits		3,791,939		1,672,002
928		Regulatory commission expense		0		0
930.1		General advertising expense		11,239		15,385
930.2		Miscellaneous general expense		404,996		481,445
931		Rents		1,504,035		1,442,171
932		Maintenance of structures and equipment		545,734		609,766
403		Depreciation and amortization expense		1,667,038		1,477,661
408		Taxes other than income taxes		761,418		661,021
409		Income taxes		232,663		190,246
410		Provision for deferred income taxes		(180,267	)	(281,871	)
411		Provision for deferred income taxes - credit		0		0
411.5		Investment tax credit		0		0
426.1		Donations		42,275		48,602
426.5		Penalties		1,640		0
427		Interest on long-term debt		0		0
430		Interest on debt to associate companies		55,055		123,723
431		Other interest expense		133,727		221,222
		Total Expense		20,455,059		18,703,940
		Net Income or (Loss)		0		0

ANALYSIS OF BILLING ASSOCIATE COMPANIES — ACCOUNT 457

NAME OF ASSOCIATE COMPANY	DIRECT COSTS CHARGED 457-1	INDIRECT COSTS CHARGED 457-2	COMPENSATION FOR USE OF CAPITAL 457-3	TOTAL AMOUNT BILLED
Concord Electric Company	1,839,994	1,237,764	0	3,077,758
Exeter & Hampton Electric Company	2,254,949	1,550,148	0	3,805,097
Fitchburg Gas and Electric Light Company	4,604,546	3,168,895	0	7,773,441
UNITIL Power Corp.	2,497,897	1,874,037	0	4,371,934
UNITIL Realty Corp.	11,388	5,683	0	17,071
UNITIL Resources, Inc.	790,321	602,819	0	1,393,140
UNITIL Corp.	794	674	0	1,468
TOTAL	11,999,889	8,440,020	0	20,439,909

ANALYSIS OF BILLING NONASSOCIATE COMPANIES — ACCOUNT 458

NAME OF NONASSOCIATE COMPANY	DIRECT COSTS CHARGED 457-1	INDIRECT COSTS CHARGED 457-2	COMPENSATION FOR USE OF CAPITAL 457-3	TOTAL COST	EXCESS OR DEFICIENCY 458-4	TOTAL AMOUNT BILLED
UNITIL Retiree Trust	0	30,000	0	30,000	0	30,000
TOTAL	0	30,000	0	30,000	0	30,000

INSTRUCTION:   Provide a brief description of the services rendered to each non-associate company.

UNITIL Retiree Trust — Professional services provided.

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

		ASSOCIATE COMPANY CHARGES						NONASSOCIATE COMPANY CHARGES						TOTAL CHARGES FOR SERVICE
DESCRIPTION OF ITEMS		DIRECT COST		INDIRECT COST		TOTAL		DIRECT COST		INDIRECT COST		TOTAL		DIRECT COST		INDIRECT COST		TOTAL
920	SALARIES AND WAGES	9,315,555		801,967		10,117,522				30,000		30,000		9,315,555		831,967		10,147,522
921	OFFICE SUPPLES AND EXPENSES	18,457		856,520		874,977								18,457		856,520		874,977
922	ADMIN EXPENSE TRANS-CREDIT			(268,627	)	(268,627	)									(268,627	)	(268,627	)
923	OUTSIDE SERVICES EMPLOYED	83,185		595,098		678,283								83,185		595,098		678,283
924	PROPERTY INSURANCE			6,548		6,548										6,548		6,548
925	INJURIES AND DAMAGES			44,864		44,864										44,864		44,864
926	EMPLOYEE PENSIONS AND BENEFITS			3,791,939		3,791,939										3,791,939		3,791,939
928	REGULATORY COMMISSION EXPENSE
930.1	GENERAL ADVERTISING EXPENSE			11,239		11,239										11,239		11,239
930.2	MISC. GENERAL EXPEENSE			404,996		404,996										404,996		404,996
931	RENTS			1,504,035		1,504,035										1,504,035		1,504,035
932	MAINT. OF STRUCT. & EQUIP	1,492,646		(946,912	)	545,734								1,492,646		(946,912	)	545,734
403	DEPR. AND AMORT. EXPENSE			1,667,038		1,667,038										1,667,038		1,667,038
408	TAXES OTHER THAN INCOME			761,418		761,418										761,418		761,418
409	INCOME TAXES			232,663		232,663										232,663		232,663
410	PROV FOR DEF INC TAXES			(180,267	)	(180,267	)									(180,267	)	(180,267	)
411	PROV FOR DEF INC TAX CREDIT
411.5	INVESTMENT TAX CREDIT
419	INTEREST INCOME
426.1	DONATIONS			42,275		42,275										42,275		42,275
426.5	PENALTIES			1,640		1,640										1,640		1,640
427	INTEREST ON LONG-TERM DEBT
431	OTHER INTEREST EXPENSE			133,727		133,727										133,727		133,727
INSTRUCTION: Total cost of service will equal for associate and nonassociate companies the total amount billed under their separate analysis of billing schedules.
SUBTOTAL EXPENSES		10,909,843		9,460,161		20,370,004		0		30,000		30,000		10,909,843		9,490,161		20,400,004
COMPENSATION FOR USE OF EQUITY CAPITAL						0						0						0
430	INTEREST ON DEBT TO ASSOCIATE COS.	0		55,055		55,055		0		0		0		0		55,055		55,055
TOTAL EXPENSES		10,909,843		9,515,216		20,425,059		0		30,000		30,000		10,909,843		9,545,216		20,455,059
421	MISCELLANEOUS (INCOME)/LOSS	0		0		0		0		0		0		0		0		0
TOTAL COST OF SERVICE		10,909,843		9,515,216		20,425,059		0		30,000		30,000		10,909,843		9,545,216		20,455,059

SCHEDULE XVII - SCHEDULE OF EXPENSE DISTRIBUTION BY DEPARTMENT OR SERVICE FUNCTION

						DEPARTMENT OR SERVICE FUNCTION										DEPARTMENT OR SERVICE FUNCTION
DESCRIPTION OF ITEMS		TOTAL AMOUNT		OVER- HEAD		REGULATORY & COMMUN.		ADMIN.		ACCOUNTING		ENERGY MARKETS		DISTRUIBUTION		FINANCE		CUSTOMER   SERVICES		ENGINEERING		TECHNOLOGY
920	SALARIES AND WAGES	10,147,522				1,071,367		1,883,105		943,487		1,306,737		320,901		840,236		1,670,174		1,383,964		727,551
921	OFFICE SUPPLES AND EXPENSES	874,977				54,890		188,341		22,817		31,305		3,168		39,841		131,215		83,389		320,011
922	ADMIN. EXPENSE TRANS-CREDIT	(268,627	)							(268,627	)
923	OUTSIDE SERVICES EMPLOYED	678,283				34,282		300,167		12,488		69,524				69,885		125,632		4,338		61,967
924	PROPERTY INSURANCE	6,548														6,548
925	INJURIES AND DAMAGES	44,864														44,864
926	EMPLOYEE PENSIONS AND BENEFITS	3,791,939				28,933		3,711,829		7,211		149				4,808		10,490		17,356		11,163
928	REGULATORY COMMISSION EXPENSE	0
930.1	GENERAL ADVERTISING EXPENSE	11,239						11,239
930.2	MISC. GENERAL EXPENSE	404,996				2,820		148,779		352						253,045
931	RENTS	1,504,035						24,883		(898,157	)	16,669		5,358		1,526,166		51,255		5,477		772,384
932	MAINT. OF STRUCT. & EQUIP.	545,734						27,366		68,280								87,441				362,646
403	DEPR. AND AMORT. EXPENSE	1,667,038								1,667,038
408	TAXES OTHER THAN INCOME	761,418								761,418
409	INCOME TAXES	232,663								232,663
410	PROV. FOR DEF. INC. TAXES	(180,267	)							(180,267	)
411	PROV. FOR DEF. INC. TAX CREDIT	0
411.5	INVESTMENT TAX CREDIT	0
426.1	DONATIONS	42,275						42,275
426.5	OTHER DEDUCTIONS	1,640														1,640
427	INTEREST ON LONG-TERM DEBT	0
430	INTEREST ON DEBT TO ASSOCIATE	55,055														55,055
	COMPANIES
431	OTHER INTEREST EXPENSE	133,727														133,727
INSTRUCTION: Indicate each department or Service function. (see instruction 01-3 General Structure of Accounting System Uniform System Account)
TOTAL EXPENSES -		20,455,059		0		1,192,292		6,337,984		2,368,704		1,424,384		329,427		2,975,815		2,076,207		1,494,524		2,255,722

DEPARTMENTAL ANALYSIS OF SALARIES — ACCOUNT 920

	DEPARTMENTAL SALARY EXPENSE				NUMBER PERSONNEL
NAME OF DEPARTMENT		INCLUDED IN AMOUNTS BILLED TO
Indicate each department or service function	TOTAL AMOUNT	PARENT COMPANY	OTHER ASSOCIATES	NON ASSOCIATES	END OF YEAR
Regulatory and Communications	1,071,367	0	1,071,367	0	15
Technology Services	727,551	0	727,551	0	12
Accounting	943,487	0	938,687	4,800	19
Finance	840,236	0	839,636	600	10
Administrative	1,883,105	0	1,859,405	23,700	18
Energy Markets	1,306,737	0	1,306,737	0	16
Engineering	1,383,964	0	1,383,964	0	22
Distribution	320,901	0	320,901	0	2
Customer Services	1,670,174	0	1,669,274	900	42
TOTAL	10,147,522	0	10,117,522	30,000	156

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 $25,000, 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 - Legal
Various		NA	1,377
LeBoeuf, Lamb, Greene		NA	55,690
Skapars & Associates		NA	17,263
Sulloway & Hollis		NA	13,243
Outside Services - Accounting
Grant Thornton		NA	12,488
Outside Services - Other
Various		NA	92,409
URT		NA	89,400
Allegiant Management		NA	69,524
Ceridian		NA	60,451
Factors Funding Co.		NA	47,114
Pomerantz Staffing		NA	46,954
Bruce Mast & Associates		NA	39,141
RHI Consulting		NA	19,244
Equinox Health		NA	18,117
Microsmart Technologies		NA	15,495
Equifax Credit Information		NA	13,263
The Hay Group		NA	12,141
Putnam Fiduciary Trust		NA	10,619
The Tetrion Group		NA	10,278
Outside Services - Market Development
Various		NA	10,994
Outside Services - Visibility
Various		NA	23,078
		TOTAL	678,283

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	1,157,423
401 K	243,943
Net Periodic Pension Expense	208,180
Supplemental Executive Retirement Plan	147,404
Life Insurance	82,585
Education	92,728
FASB 106	45,938
Severance Costs	1,511,048
Other	302,690
TOTAL	3,791,939

GENERAL ADVERTISING EXPENSES — ACCOUNT 930.1

INSTRUCTIONS:

Provide a listing of the amounts included in Account930.1 “General Advertising Expenses”, classifying the items according to the nature of the advertising and as defined in the account definition. If a particular class includes 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	Advance Notice, Inc.	10,909
Advertising	Monster.Com	305
Advertising	Other	25
	TOTAL	11,239

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
Printing and Distribution of Quarterly and Annual Reports	79,263
Director's Fees and Expenses	173,782
Systems Development Costs	151,951
TOTAL	404,996

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
Office Building	1,525,705
EDP Equipment	(27,966)
Miscellaneous	6,296
TOTAL	1,504,035

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:
State Unemployment Tax - NH	8,663
Business Enterprise Tax	49,200
Business Profits Tax	0
SUBTOTAL	57,863
U.S. Government Tax:
Federal Insurance Contribution Act	693,826
Federal Unemployment Tax	9,729
SUBTOTAL	703,555
TOTAL	761,418

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
United Way		15,100
NHPTV		2,000
American Cancer Society		1,844
Leukemia & Lymphoma		1,304
American Heart Association		1,050
Various		20,977
	TOTAL	42,275

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
IRS Penalty		1,640

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 16.

ORGANIZATION CHART               

ORGANIZATION CHART as of December 31, 2002
President	Anthony J. Baratta, Jr.
Senior Executive Vice President	Michael J. Dalton
Senior Vice President	George R. Gantz
Vice President	Glenn D. Appleton
Vice President	Todd R. Black
Vice President & Controller	Laurence M. Brock
Vice President & Treasurer	Mark H. Collin
Vice President	David K. Foote
Vice President	Raymond J. Morrissey
Vice President	Thomas E. Smith
Vice President	Frederick J. Stewart
Asst. Treasurer	Charles J. Kershaw, Jr.
Secretary	Sandra L. Whitney

METHODS OF ALLOCATION

The cost of services rendered by UNITIL Service are allocated and billed based on direct time charges and to a lesser extent, direct cost assigned to individual projects or jobs performed on behalf of associated companies in accordance with the general guidelines set forth below.

A.

Direct Labor Cost — Gross Wages. Direct Labor Cost — Gross Wages are based on the actual gross wage rates of assigned employees multiplied by the actual number of hours worked and directly charged to specific projects or jobs.

B.

Direct Labor Cost — Other. Direct Labor Cost — Other includes the costs of paid absences, such as vacations, sick pay and holidays, and are allocated by employee based on the direct time charged to associated companies. In the event there are not direct time charges available for this allocation, the direct time charges for all UNITIL Service employees are used to make this allocation.

C.

General Overhead Costs, including Indirect Labor. General Overhead Costs represent UNITIL Service Indirect Labor Costs and Administrative and General Expenses, and are allocated based on a monthly overhead rate applied against direct time charges. Indirect Labor Costs include pension costs, insurance, payroll taxes, employee savings plan, and similar payroll and benefit items. Administrative and General Expenses are those administrative and operating expenses incurred by UNITIL Service in providing services to associated companies which are not directly associated with a specific project or job.

D.

Direct Charges. Direct Charges are costs that are directly assignable based on the individual projects or jobs performed on behalf of associated companies, and are excluded from General Overheads. Direct Charges are billed at actual cost and include: Employee Travel, Meals, Lodging, and Other Related Expenses, Data Management Hardware Leases and Maintenance Costs, Telephone Lease, and other miscellaneous expenses.

ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED - Non applicable

SIGNATURE CLAUSE

Pursuant to the requirements of the Public Utility Holding Company Act of1935 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 Service Corp.

BY: /S/ Laurence M. Brock —————————————— Laurence M. Brock Vice President & Controller

BY: /S/ Mark H. Collin —————————————— Mark H. Collin Vice President & Treasurer

April 29, 2003