<PAGE>Exhibit A-2
<TABLE>
RETAINED EARNINGS ANALYSIS OF NATIONAL GRID USA
DETAILING GROSS EARNINGS, GOODWILL AMORTIZATION, DIVIDENDS PAID
AND RESULTING CAPITAL BALANCES
AT SEPTEMBER 30, 2000
($MM)
<CAPTION>
NEW
THE ENGLAND NEW
MASSA- NARRA- GRANITE NEW HYDRO ENGLAND
CHUSETTS GANSETT STATE NANTUCKET ENGLAND TRANS
HYDRO
ELECTRIC ELECTRIC ELECTRIC ELECTRIC POWER
ELECTRIC TRANSMISSION
COMPANY COMPANY COMPANY COMPANY COMPANY
CO.,INC. CORPORATION
<S> <C> <C> <C> <C> <C> <C> <C>
Retained Earnings-
Beginning of Period $(0.8) $(0.4) - $0.1 $ 1.4
$0.3 $0.3
Net Income(Loss) 5.5 9.4 $0.7 (0.1) 30.7 3.6
2.1
Other Credits - - - - - - -
Goodwill Amortization 25.1 12.2 0.5 0.4 8.8 -
-
------- ----- -------- ----- ---- ----
---- ----
Gross Retained Earnings 29.8 21.2 1.2 0.4 40.9
3.9 2.4
Dividends Paid on Preferred Stock 1.1 0.2 - - - -
-
Dividends Paid on Common Stock
Out of Retained Earnings - - - - - 3.3 2.1
Out of Capital Surplus - - - - - - -
Out of Capital - - - - - - -
------- ---- -------- ----- ---- ----
---- ----
Total Dividends Paid on Common Stock - - - - - 3.3
2.1
Repurchase of Common Stock - - - - - - -
Retained Earnings Adjustment 0.3 0.5 - - 0.5
- -
------- ---- -------- ----- ---- ----
---- ----
Retained Earnings-End of Period 29.0 21.5 1.2 0.4 41.4
0.6 0.3
======= ==== ======== ===== ==== ====
==== ====
Common Stock 60.0 56.6 6.0 - 72.4 2.9 0.1
Premium on Common Stock - - - - - 12.9 6.6
Other Paid-in Capital 1,467.4 785.2 39.1 21.7
730.4 25.2 17.9
Unappropriated Retained Earnings 29.0 21.5 1.2 0.4
41.4 0.6 0.3
Treasury Stock, At Cost - - - - - - -
Reaquired Capital Stock - - - - - - -
Unrealized Appreciation 0.1 0.2 - - - - -
---- ---- -------- ----- ---- ---- ----
----
Total Proforma Common Equity 1,556.5 863.5 46.3 22.1
844.2 41.6 24.9
---- ---- -------- ----- ---- ---- ----
----
Goodwill Amortization (25.1) (12.2) (0.5) (0.4)
(8.8) - -
---- ---- -------- ----- ---- ---- ----
----
Common Equity Per Books as
Reflected on Schedule 10 $1,531.4 $851.3 $45.8 $21.7
$835.4 $41.6 $24.9
======= ==== ======== ===== ==== ====
==== ====
</TABLE>
<PAGE><TABLE>
RETAINED EARNINGS ANALYSIS OF NATIONAL GRID USA
DETAILING GROSS EARNINGS, GOODWILL AMORTIZATION, DIVIDENDS PAID
AND RESULTING CAPITAL BALANCES
AT SEPTEMBER 30, 2000
($MM)
<CAPTION>
NEW NEW NATIONAL
ENGLAND ENGLAND NATIONAL GRID USA NEW
HYDRO ELECTRIC GRID USA TRANSM. ENGLAND NEES EUA
FINANCE TRANSMISSION SERVICE SERVICES ENERGY
ENERGY ENERGY
COMPANY CORPORATION CO.,INC. CORP. INC
INC INVESTMENT
<S> <C> <C> <C> <C> <C> <C> <C>
Retained Earnings-
Beginning of Period - - - - - - -
Net Income(Loss) - $0.5 $1.0 - - $(0.4) $0.1
Other Credits - - - - - - -
Goodwill Amortization - - - - - 0.3 -
---- ---- --------- ---- ---- ---- ----
Gross Retained Earnings - 0.5 1.0 (0.1) 0.1
Dividends Paid on Preferred Stock - - - - - - -
Dividends Paid on Common Stock
Out of Retained Earnings - 0.2 - - - - -
Out of Capital Surplus - - - - - - -
Out of Capital - - - - - - -
---- ---- --------- ---- ---- ---- ----
Total Dividends Paid on Common Stock - 0.2 - - - -
-
Repurchase of Common Stock - - - - - - -
Retained Earnings Adjustment - - - - - - -
---- ---- --------- ---- ---- ---- ----
Retained Earnings-End of Period - 0.3 1.0 - -
(0.1) 0.1
===== ==== ========= ===== ==== ====
====
Common Stock - - - - - - -
Premium on Common Stock - - - - - - -
Other Paid-In Capital - 1.3 28.2 - (25.5)
(7.1) 19.5
Unappropriated Retained Earnings - 0.3 1.0 - -
(0.1) 0.1
Treasury Stock, At Cost - - - - - - -
Reacquired Capital Stock - - - - - - -
Unrealized Appreciation - - 2.1 - - - -
---- ---- -------- ---- ---- ---- ----
Total Proforma Common Equity - 1.6 31.3 - (25.5)
(7.2) 19.6
---- ---- -------- ---- ---- ---- ----
Goodwill Amortization - - - - - (0.3) -
---- ---- -------- ---- ---- ---- ----
Common Equity Per Books as
Reflected On Schedule 10 - $1.6 $31.3 - $(25.5)
$(7.5) $19.6
===== ==== ======== ===== ==== ====
====
</TABLE>
<PAGE><TABLE>
RETAINED EARNINGS ANALYSIS OF NATIONAL GRID USA
DETAILING GROSS EARNINGS, GOODWILL AMORTIZATION, DIVIDENDS PAID
AND RESULTING CAPITAL BALANCES
AT SEPTEMBER 30, 2000
($MM)
<CAPTION>
GRANITE METRO
STATE WEST WAYFINDER NEES NATIONAL NATIONAL
ENERGY REALTY GROUP COMMUN- GRID USA GRID USA
INC LLC INC ICATIONS (Parent)
CONSOLIDATED
<S> <C> <C> <C> <C> <C> <C>
Retained Earnings-
Beginning of Period - - - $(0.1) $2.2 $2.2
Net Income(Loss) - $0.5 $0.1 (1.9) 48.3 48.3
Other Credits - - - - - -
Goodwill Amortization - - - 3.2 (0.1) 50.3
---- ---- --------- ------- ------- ------
Gross Retained Earnings - 0.5 0.1 1.2 50.4 100.8
Dividends Paid on Preferred Stock - - - - - -
Dividends Paid on Common Stock
Out of Retained Earnings - - - - - -
Out of Capital Surplus - - - - - -
Out of Capital - - - - - -
---- ---- --------- ------- ------- ------
Total Dividends Paid on Common Stock - - - - - -
Repurchase of Common Stock - - - - - -
Retained Earnings Adjustment - - - - - -
---- ---- --------- ------- ------- ------
Retained Earnings-End of Period - 0.5 0.1 1.2
50.4 100.8
==== ==== ======== ======= ======= ------
Common Stock - - - - 59.4 59.4
Premium on Common Stock - - - - - -
Other Paid-In Capital (0.4) 2.1 (4.4) 125.3
3,977.6 3,977.6
Unappropriated Retained Earnings - 0.5 0.1 1.2
50.4 100.8
Treasury Stock, At Cost - - - - - -
Reacquired Capital Stock - - - - - -
Unrealized Appreciation - - - - 0.2 2.6
---- ---- --------- ------- ------- ------
Total Proforma Common Equity (0.4) 2.6 (4.3) 126.5
4,087.6 4,140.4
---- ---- --------- ------- ------- -------
Goodwill Amortization - - - (3.2) 0.1 (50.3)
---- ---- --------- ------- ------- -------
Common Equity Per Books As
Reflected on Schedule 10 $(0.4) $2.6 $(4.3) $123.3
$4,087.7 $4,090.1
====== ===== ====== ======== ======= =======
</TABLE>
