<PAGE> 1
File No. 69-249
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM U-3A-2
For the Year Ended December 31, 1997
Statement by Holding Company Claiming Exemption Under Rule U-3A-2 from the
Provisions of the Public Utility Holding Company Act of 1935
To Be Filed Annually Prior to March 1
BAY STATE GAS COMPANY
hereby files with the Securities and Exchange Commission, pursuant to Rule 2,
its statement claiming exemption as a holding company from the provisions of the
Public Utility Holding Company Act of 1935 (the "Act"), and submits the
following information:
1. Name, State of organization, location and nature of business of
claimant and every subsidiary thereof.
Bay State Gas Company ("Bay State"), a Massachusetts corporation with its
principal executive offices in Westborough, Massachusetts, is a gas utility
company and a holding company as defined in the Act.
Northern Utilities, Inc. ("Northern"), a New Hampshire corporation with offices
in Portsmouth, New Hampshire, is a wholly owned subsidiary of Bay State and is
also a gas utility company as defined in the Act. Granite State Gas
Transmission, Inc. ("Granite"), a New Hampshire corporation with offices in
Portsmouth, New Hampshire, is a wholly owned subsidiary of Bay State and is an
interstate gas transmission company, but is not a gas utility company as defined
in the Act. Bay State Energy Enterprises, Inc. ("BSEE"), Natural Gas Development
Inc. ("NGDI"), EnergyUSA, Inc., EnergyEXPRESS, Inc., and LNG Development Corp.
are Massachusetts corporations with offices in Westborough, Massachusetts, are
wholly owned subsidiaries of Granite and are not gas utilities as defined in the
Act.
2. A brief description of the properties of claimant and each of its
subsidiary public utility companies used for the generation,
transmission, and distribution of electric energy for sale, or for
the production, transmission and distribution of natural or
manufactured gas, indicating the location of principal generating
plants, transmission lines, producing fields, gas manufacturing
plants, and electric and gas distribution facilities, including all
such properties which are outside the State in which claimant and
its subsidiaries are organized and all transmission or pipelines
which deliver or receive electric energy or gas at the borders of
such State.
Page 1
<PAGE> 2
BAY STATE. The Massachusetts service area of Bay State covers approximately
1,344 square miles in Massachusetts and, at December 31, 1996, included a
population of approximately 1,340,000. At December 31, 1997, Bay State furnished
gas service to a total of approximately 261,000 residential, commercial,
industrial and interruptible customers and has franchise rights in 61
communities within Massachusetts.
Bay State's location serving an area covering approximately 839 square miles in
southeastern Massachusetts supplies gas service to the cities of Attleboro,
Brockton and Taunton and 37 surrounding towns ("Brockton"). Bay State's location
serving an area covering approximately 415 square miles in western Massachusetts
supplies gas service to the cities of Chicopee, Northampton and Springfield and
14 neighboring towns ("Springfield"). Bay State's location serving an area
covering approximately 90 square miles in northeastern Massachusetts supplies
gas service to the city of Lawrence and 3 neighboring towns ("Lawrence"). None
of Bay State's distribution facilities are outside of Massachusetts.
The gas distributed by Bay State in Massachusetts is principally pipeline
natural gas purchased under a portfolio of domestic gas supply contracts and
transported under capacity contracts to its distribution system from the
producing areas of North America. Bay State distributes some Canadian pipeline
natural gas purchased from Granite.
Bay State produces liquid propane (LP) air gas from LP purchased from several
suppliers. The LP air gas is produced by Bay State's seven propane air gas
plants, all located in the Commonwealth of Massachusetts, which have a combined
storage capacity of 320,249 MMBtu of natural gas equivalent and a combined rated
daily vaporization capability of 118,194 MMBtu. A list of Bay State's propane
air gas plants, indicating the location and capacity of each plant, is attached
hereto as Schedule A.
Springfield has a leased liquefied natural gas (LNG) facility which consists of
liquefaction equipment capable of liquefying 10,000 MMBtu of natural gas per
day, a 1,020,000 MMBtu storage tank and vaporization equipment capable of
vaporizing 55,000 MMBtu per day. Brockton has a leased LNG facility with a
storage capacity of 800,000 MMBtu and a rated daily vaporization capability of
50,000 MMBtu. Both the Brockton and Lawrence have LNG satellite facilities with
storage capacities of 8,000 and 12,800 MMBtu, and daily vaporization capability
of 12,000 and 19,200 MMBtu, respectively. A list of Bay State's LNG facilities,
indicating the location and capacity of each facility, is attached hereto as
Schedule B.
Bay State does not own any underground storage facilities; rather, it has
storage contracts with the Algonquin Gas Transmission Company, Texas Eastern
Corporation, Tennessee Gas Pipeline Company, National Fuel Gas Supply
Corporation, and CNG Transmission Corporation.
NORTHERN. Northern, through its New Hampshire and Maine locations, is engaged in
the distribution and sale of natural gas to residential, commercial, industrial
and interruptible customers in New Hampshire and Maine.
The service area of Northern covers approximately 808 square miles in New
Hampshire and Maine and, at December 31, 1990, included a population of
approximately 450,000. At December 31, 1997, Northern furnished gas service to a
total of approximately 46,000 customers in 41 communities.
Northern's location serving an area covering approximately 314 square miles in
southeastern New Hampshire supplies gas service to the city of Portsmouth and 22
surrounding cities and towns ("New Hampshire"). Northern's location serving an
area covering approximately 493 square miles in southern
Page 2
<PAGE> 3
Maine supplies gas service to the cities a Portland, Lewiston and Auburn and 15
neighboring cities and towns ("Maine").
The gas distributed by Northern is principally pipeline natural gas purchased
under a portfolio of gas supply contracts and transported under capacity
contracts to Northern's distribution system from the producing areas of North
America. Northern distributes some Canadian pipeline natural gas purchased from
Granite.
New Hampshire has one LP air gas plant with a storage capacity of 9,908 MMBtu of
natural gas equivalent and rated daily vaporization capability of 4,080 MMBtu .
Maine has one LP air gas plant with a storage capacity of 16,761 MMBtu of
natural gas equivalent and a rated daily vaporization capability of 10,000 MMBtu
(see Schedule A).
Maine has one LNG facility with a storage capability of 13,750 MMBtu and a rated
daily vaporization capability of 14,000 MMBtu (see Schedule B).
Bay State believes there are two bases upon which it is exempt from the Act
under Section 3 (A)(2) thereof. First, Bay State itself is predominantly a
public utility company whose operations as such do not extend beyond
Massachusetts. Second, Bay State's entire operation as a holding company system
only extends to states "contiguous" to Massachusetts: New Hampshire and Maine.
Maine and Massachusetts are "contiguous" under the alternative definition for
that word, "nearby".
3. The following information for the last calendar year with respect to
claimant and each of its subsidiary public utility companies:
(a) Number of MCF of natural or manufactured gas distributed at
retail.
(b) Number of MCF of natural or manufactured gas distributed at
retail outside the state in which each such company is
organized.
(c) Number of MCF of natural or manufactured gas sold at wholesale
outside the state in which each such company is organized, or at
the state line.
(d) Number of MCF of natural or manufactured gas purchased outside
the state in which each such company is organized, or at the
state line.
FOR TWELVE MONTHS ENDED DECEMBER 31, 1997
BAY STATE MASSACHUSETTS
<TABLE>
<S> <C>
(a) MCF of gas distributed at retail 49,341,000
(b) MCF of gas distributed at retail outside of Massachusetts -0-
(c) MCF of gas sold at wholesale outside Massachusetts,
or at the Massachusetts state line 5,123,000
(d) MCF of gas purchased outside Massachusetts,
or at the Massachusetts state line 56,892,000
</TABLE>
Page 3
<PAGE> 4
NORTHERN
<TABLE>
<S> <C>
(a) MCF of gas distributed at retail 11,389,000
(b) MCF of gas distributed at retail outside of New Hampshire 6,249,000
(c) MCF of gas sold at wholesale outside New Hampshire,
or at the New Hampshire state line 263,000
(d) MCF of gas purchased outside New Hampshire, or at the
New Hampshire state line 12,239,000
</TABLE>
4. The following information for the reporting period with respect to
claimant and each interest it holds directly or indirectly in an EWG
or a foreign utility company, stating monetary amounts in United
States dollars:
(a) Name, location, business address and description of the
facilities used by the EWG or foreign utility company for the
generation, transmission and distribution of electric energy for
sale or for the distribution at retail of natural or
manufactured gas.
(b) Name of each system company that holds an interest in such EWG
or foreign utility company; and description of the interest
held.
(c) Type and amount of capital invested, directly or indirectly, by
the holding company claiming exemption; any direct or indirect
guarantee of the security of the EWG or foreign utility company
by the holding company claiming exemption; and any debt or other
financial obligation for which there is recourse, directly or
indirectly, to the holding company claiming exemption or another
system company, other than the EWG or foreign utility company.
(d) Capitalization and earnings of the EWG or foreign utility
company during the reporting period.
(e) Identify any service, sales or construction contract(s) between
the EWG or foreign utility company and a system company, and
describe the services to be rendered or goods sold and fees or
revenues under such agreement(s).
Items (a through e) are not applicable to registrant because it does not hold
directly or indirectly, any interest in an Exempt Wholesale Generator (EWG) nor
in a foreign utility company. Also, registrant has not included Exhibit C, an
organizational chart, as it has no interest in an EWG or a foreign utility.
Page 4
<PAGE> 5
EXHIBIT A
A consolidating statement of income and surplus of the claimant and its
subsidiary companies for the last calendar year, together with a consolidating
balance sheet of claimant and its subsidiary companies as of the close of such
calendar year.
The consolidating statements of income and consolidating balance sheets are
attached hereto as Exhibit 99.1
The above named claimant has caused this statement to be duly executed on its
behalf by its authorized officer on this 28th day of February, 1998.
BAY STATE GAS COMPANY
--------------------------------------------
(Name of Claimant)
By /s/ Thomas W. Sherman
--------------------------------------------
Executive Vice President, Treasurer and
Chief Financial Officer
CORPORATE SEAL
By /s/ Stephen J. Curran
--------------------------------------------
Controller
Attest:
/s/ William D. MacGillivray
- ----------------------------------
Assistant Clerk
Name, title and address of officer to whom notices and correspondence concerning
this statement should be addressed:
Thomas W. Sherman, Executive Vice President, Treasurer and Chief
Financial Officer
Bay State Gas Company
300 Friberg Parkway
Westborough, Massachusetts 01581-5039
EXHIBIT B. FINANCIAL DATA SCHEDULE
The financial data schedule is attached hereto as Exhibit 27.
EXHIBIT C
As discussed under item 4, Exhibit C is not applicable to the registrant as it
has no interest in an EWG or a foreign utility.
Page 5
<PAGE> 6
SCHEDULE A
BAY STATE GAS COMPANY
PROPANE AIR GAS FACILITIES
Storage Vaporization
Location Capacity Capability
-------- -------- ------------
(MMBtu) (MMBtu/day)
BAY STATE:
Brockton 79,592 30,000
Taunton 32,427 11,980
West Medway 20,427 5,273
West Springfield 79,265 24,699
East Longmeadow 59,450 13,414
Northampton 24,544 11,740
Lawrence 24,544 21,088
------- -------
Total Bay State 320,249 118,194
------- -------
NORTHERN:
Portsmouth 9,908 4,080
Portland 16,761 10,000
------- -------
Total Northern 26,669 14,080
------- -------
Grand Total 346,918 132,274
======= =======
Page 6
<PAGE> 7
SCHEDULE B
BAY STATE GAS COMPANY
LNG FACILITIES
<TABLE>
<CAPTION>
Storage Vaporization Liquefaction
Location Capacity Capability Capability
-------- -------- ------------ ------------
MMBtu MMBtu/day MMBtu/day
<S> <C> <C> <C>
BAY STATE:
Ludlow 1,020,000 55,000 10,000
Easton 800,000 50,000 0
Marshfield 8,000 12,000 0
Lawrence 12,800 19,200 0
--------- ------- ------
Total Bay State 1,840,800 136,200 10,000
--------- ------- ------
NORTHERN:
Lewiston 13,750 14,000 0
Portland 0 3,600 0
--------- ------ ------
Total Northern 13,750 17,600 0
--------- ------ ------
Grand Total 1,854,550 153,800 10,000
========= ======= ======
</TABLE>
Page 7
<PAGE> 1
EXHIBIT 99
BAY STATE GAS COMPANY
CONSOLIDATING BALANCE SHEET
As of December 31, 1997 with comparative amounts for 1996
(Unaudited, in thousands)
<TABLE>
<CAPTION>
Granite 1997 1996
Bay State Northern State Gas Bay State Gas Bay State Gas
Gas Utilities, Trans Consolidated Company Company
Company Inc. Consolidated Eliminations Consolidated Consolidated
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Assets:
Utility plant, at cost $576,407 $127,401 $ 0 $ 0 $703,808 $687,799
Accumulated depreciation &
amortization 179,357 28,005 0 0 207,362 190,956
- ------------------------------------------------------------------------------------------------------------------------------------
Net utility plant 397,050 99,396 0 0 496,446 496,843
- ------------------------------------------------------------------------------------------------------------------------------------
Non-utility plant, at cost 92 4,724 27,309 0 32,125 26,655
Accumulated depreciation &
amortization 1 1,541 14,549 0 16,091 12,913
- ------------------------------------------------------------------------------------------------------------------------------------
Net non-utility plant 91 3,183 12,760 0 16,034 13,742
- ------------------------------------------------------------------------------------------------------------------------------------
Investments 87,386 2 21,941 (87,354) 21,975 19,441
Prepaid benefit plans 18,983 2,512 158 0 21,653 19,674
Other long-term assets 7,115 674 3,800 (425) 11,164 9,709
Current assets:
Cash and temporary cash
investments 1,735 (826) 1,711 0 2,620 7,153
Accounts receivable, net 50,141 12,292 8,652 0 71,085 61,815
Accounts receivable associated
companies 9,295 430 11,922 (21,647) 0 0
Unbilled revenues 11,500 1,999 0 0 13,499 10,443
Deferred gas costs 35,092 2,299 0 0 37,391 42,078
Inventories, at average cost 47,031 2,358 1,033 0 50,422 27,707
Prepayments 3,202 1,488 603 0 5,293 5,271
- ------------------------------------------------------------------------------------------------------------------------------------
Total current assets 157,996 20,040 23,921 (21,647) 180,310 154,467
Regulatory assets - income taxes 4,134 7,676 338 0 12,148 11,059
Other deferred debits 16,517 5,298 6,719 0 28,534 31,155
- ------------------------------------------------------------------------------------------------------------------------------------
Total Assets $689,272 $138,781 $69,637 $(109,426) $788,264 $756,090
====================================================================================================================================
</TABLE>
<PAGE> 2
BAY STATE GAS COMPANY
CONSOLIDATING BALANCE SHEET
As of December 31, 1997 with comparative amounts for 1996
(Unaudited, in thousands)
<TABLE>
<CAPTION>
Granite 1997 1996
Bay State Northern State Gas Bay State Gas Bay State Gas
Gas Utilities, Trans Consolidated Company Company
Company Inc. Consolidated Eliminations Consolidated Consolidated
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Capitalization & Liabilities:
Common stock equity:
Common stock $ 45,030 $ 1 $ 30 $ (31) $ 45,030 $ 44,812
Paid in capital 103,480 11,895 19,355 (31,250) 103,480 102,089
Retained earnings 92,539 45,189 10,884 (56,073) 92,539 89,396
- -----------------------------------------------------------------------------------------------------------------------------------
Total common stock equity 241,049 57,085 30,269 (87,354) 241,049 236,297
Cumulative preferred stock 4,916 0 0 0 4,916 5,010
Long-term debt:
Revolving credit agreement 0 18,000 0 0 18,000 18,000
Notes 188,500 28,000 4,527 0 221,027 216,500
- -----------------------------------------------------------------------------------------------------------------------------------
Total long-term debt 188,500 46,000 4,527 0 239,027 234,500
Less: current maturities 0 (5,000) 0 0 (5,000) (18,000)
Long-term debt, net 188,500 41,000 4,527 0 234,027 216,500
- -----------------------------------------------------------------------------------------------------------------------------------
Total capitalization 434,465 98,085 34,796 (87,354) 479,992 457,807
Long-term liabilities:
Deferred taxes 68,918 13,752 3,240 0 85,910 81,184
Other long-term liabilities 12,100 2,316 7,275 (425) 21,266 17,163
Current Liabilities:
Short-term debt 81,320 4,740 3,940 0 90,000 86,500
Current maturities of long-
term debt 0 5,000 0 0 5,000 18,000
Current obligations under
capital leases 0 0 0 0 0 0
Accounts payable 37,698 6,273 12,553 0 56,524 47,783
Accounts payable to associated
companies 10,491 3,617 7,539 (21,647) 0 0
Fuel purchase commitments 23,453 614 0 0 24,067 22,988
Refunds due customers 10,669 705 0 0 11,374 9,862
Deferred and accrued taxes 4,383 2,185 157 0 6,725 7,269
Other 5,775 1,494 137 0 7,406 7,534
- -----------------------------------------------------------------------------------------------------------------------------------
Total current liabilities 173,789 24,628 24,326 (21,647) 201,096 199,936
Total Capitalization & Liabilities $689,272 $138,781 $69,637 $(109,426) $788,264 $756,090
===================================================================================================================================
</TABLE>
<PAGE> 3
BAY STATE GAS COMPANY
CONSOLIDATING STATEMENT OF INCOME
For the twelve months ended December 31, 1997
<TABLE>
<CAPTION>
(1) (2) (3) (4)
Granite 1997
Bay State Northern Total State Gas Bay State Gas
Gas Utilities, Utility Utility Transmission Consolidated Company
Company Inc. Eliminations Operations Inc. Eliminations Consolidated
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Gas revenues $357,541 $80,198 $(8,058) $429,681 $70,785 $(70,490) $429,976
Cost of gas sold 225,325 51,385 (8,358) 268,352 70,749 (70,749) 268,352
- -----------------------------------------------------------------------------------------------------------------------------------
Net gas revenues 132,216 28,813 300 161,329 (36) 259 161,624
- -----------------------------------------------------------------------------------------------------------------------------------
Transportation revenues 9,392 2,407 (300) 11,499 8,645 (259) 19,885
Other operating revenues 5,577 672 0 6,249 83 0 6,332
- -----------------------------------------------------------------------------------------------------------------------------------
Total net operating revenues 147,185 31,892 0 179,077 8,764 0 187,841
- -----------------------------------------------------------------------------------------------------------------------------------
Operating expenses
Operations 62,317 13,131 0 75,448 6,540 1,799 83,787
Restructuring costs (Note A) 11,213 156 0 11,369 0 0 11,369
Maintenance 7,886 939 0 8,825 487 0 9,312
Depreciation and amortization 22,716 4,478 0 27,194 690 0 27,884
Federal and state taxes 9,009 2,583 0 11,592 483 0 12,075
Other taxes, principally
property taxes 9,599 2,720 0 12,319 401 0 12,720
- -----------------------------------------------------------------------------------------------------------------------------------
Total operating expenses 122,740 24,007 0 146,747 8,601 1,799 157,147
- -----------------------------------------------------------------------------------------------------------------------------------
Utility operating income 24,445 7,885 0 32,330 163 (1,799) 30,694
Interest expense 14,111 3,473 0 17,584 449 0 18,033
- -----------------------------------------------------------------------------------------------------------------------------------
Net utility income (Note A) 10,334 4,412 0 14,746 (286) (1,799) 12,661
Other revenues 12,963 3,915 0 16,878 15,250 (2,349) 29,779
Other expenses, including taxes 10,383 3,600 0 13,983 18,170 (4,148) 28,005
Gain from sale of subsidiary,
net of tax 0 0 0 0 7,855 0 7,855
Income from investments 0 0 0 0 2,286 0 2,286
- -----------------------------------------------------------------------------------------------------------------------------------
Other income 2,580 315 0 2,895 7,221 1,799 11,915
- -----------------------------------------------------------------------------------------------------------------------------------
Net income before equity
earnings of subsidiaries 12,914 4,727 0 17,641 6,935 0 24,576
Equity earnings of subsidiaries 11,662 0 (4,727) 6,935 0 (6,935) 0
- -----------------------------------------------------------------------------------------------------------------------------------
Net income 24,576 4,727 (4,727) 24,576 6,935 (6,935) 24,756
Retained earnings, beginning of
period 89,396 40,462 (40,462) 89,396 3,949 (3,949) 89,396
Dividends declared (21,433) 0 0 (21,433) 0 0 (21,433)
- -----------------------------------------------------------------------------------------------------------------------------------
Retained earnings, end of $ 92,539 $45,189 $(45,189) $92,539 $10,884 $(10,884) $ 92,539
period
==========================================================================+========================================================
</TABLE>
Note A: Net utility income includes the write-off of restructuring charges of
$11,369. Exclusive of these write-offs, and the related taxes, net
utility income for Total Utility Operations would have been $21,576.
(1) Other operations in Bay State are mainly Massachusetts propane
operations and merchandising and jobbing.
(2) Other operations in Northern are mainly propane operations,
merchandising and jobbing and Maine water heater rentals.
(3) Bay State and Northern have the only utility operations as defined under
PUHCA. Both Bay State and Northern have other operations, as
described in Notes 1 and 2.
(4) Granite State is not a utility under PUHCA, therefore all of its operations,
as well as EnergyUSA, EnergyEXPRESS, BSEE, NGDI and the other subs are
grouped separately from the two utilities. Granite's pipeline operations are
regulated by the Federal Energy Regulatory Agency and use a chart of
accounts similar to the utilities, so the pipeline's operations are shown in
the same format as the utilities, even though, under PUHCA, they are not a
utility. Granite's other activities are shown as other operations.
<PAGE> 4
BAY STATE GAS COMPANY
CONSOLIDATING STATEMENT OF INCOME
For the twelve months ended December 31, 1996
<TABLE>
<CAPTION>
(1) (2) (3) (4)
Granite 1996
Bay State Northern Total State Gas Bay State Gas
Gas Utilities, Utility Utility Trans., Inc. Consolidated Company
Company Inc. Eliminations Operations Consolidated Eliminations Consolidated
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Gas revenues $328,132 $70,935 $(8,508) $390,559 $72,029 $(72,029) $390,559
Cost of gas sold 195,962 43,338 (9,308) 279,992 71,889 (71,839) 229,992
- ----------------------------------------------------------------------------------------------------------------------------------
Net gas revenues 132,170 27,597 800 160,567 140 (140) 160,567
- ----------------------------------------------------------------------------------------------------------------------------------
Transportation revenues 6,193 1,629 (800) 7,022 6,857 (140) 14,019
Other operating revenues 10,387 989 0 11,376 29 (1,243) 10,162
- ----------------------------------------------------------------------------------------------------------------------------------
Total net operating revenues 148,750 30,215 0 178,965 7,026 (1,243) 184,748
- ----------------------------------------------------------------------------------------------------------------------------------
Operating expenses
Operations 63,920 13,468 0 77,388 4,700 (194) 81,894
Maintenance 8,530 1,073 0 9,603 795 0 10,398
Depreciation and
amortization 20,949 3,907 0 24,856 967 0 25,823
Federal and state taxes 13,214 2,317 0 15,531 592 0 16,123
Other taxes, principally
property taxes 9,853 2,291 0 12,144 399 0 12,543
- ----------------------------------------------------------------------------------------------------------------------------------
Total operating expenses 116,466 23,056 0 139,522 7,453 (194) 146,781
- ----------------------------------------------------------------------------------------------------------------------------------
Utility operating income 32,284 7,159 39,443 (427) (1,049) 37,967
Interest expense 12,963 3,550 16,513 444 0 16,957
- ----------------------------------------------------------------------------------------------------------------------------------
Net utility income 19,321 3,609 0 22,930 (871) (1,049) 21,010
Other revenues 12,412 3,731 0 16,143 5,744 (1,134) 20,753
Other expenses, including
taxes 12,151 3,508 0 15,659 5,347 (2,183) 18,823
Income from investments 0 0 0 0 2,957 0 2,957
- ----------------------------------------------------------------------------------------------------------------------------------
Other income 261 223 0 484 3,354 (1,049) 4,887
- ----------------------------------------------------------------------------------------------------------------------------------
Net income before equity
earnings of subsidiaries 19,582 3,832 0 23,414 2,483 0 25,897
Equity earnings of subsidiaries 6,315 0 (3,832) 2,483 0 (2,483) 0
- ----------------------------------------------------------------------------------------------------------------------------------
Net income 25,897 3,832 (3,832) 25,897 2,483 (2,483) 25,897
Retained earnings, beginning
of period 84,319 36,630 (36,630) 84,319 1,466 (1,466) 84,319
Dividends declared (20,820) 0 0 (20,820) 0 0 (20,820)
- ----------------------------------------------------------------------------------------------------------------------------------
Retained earnings, end of
period $ 89,396 $40,462 $(40,462) $89,396 $ 3,949 $(3,949) $ 89,396
==================================================================================================================================
</TABLE>
Notes:
(1) Other operations in Bay State are mainly Massachusetts propane operations
and merchandising and jobbing.
(2) Other operations in Northern are mainly propane operations, merchandising
and jobbing and Maine water heater rentals.
(3) Bay State and Northern are the only utility operations as defined under
PUHCA. Both Bay State and Northern have other operations, as described
in Notes 1 and 2.
(4) Granite State is not a utility under PUHCA, therefore all of its operations,
as well as EnergyUSA, EnergyEXPRESS, BSEE, NGDI and the other subs are
grouped separately from the two utilities. Granite's pipeline operations are
regulated by the Federal Energy Regulatory Agency and use a chart of
accounts similar to the utilities, so the pipeline's operations are shown in
the same format as the utilities, even though, under PUHCA, they are not a
utility. Granite's other activities are shown as other operations.
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> OPUR3
<CIK>
<NAME> BAY STATE
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> DEC-31-1997
<TOTAL-ASSETS> 689,272
<TOTAL-OPERATING-REVENUES> 372,510
<NET-INCOME> 24,576
- ----------
[BOOK-VALUE] PER BOOK
</FN>
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> OPUR3
<CIK>
<NAME>NORTHERN
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> DEC-31-1997
<TOTAL-ASSETS> 138,781
<TOTAL-OPERATING-REVENUES> 83,277
<NET-INCOME> 4,727
- ----------
[BOOK-VALUE] PER BOOK
</FN>
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> OPUR3
<CIK>
<NAME> GRANITE
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> DEC-31-1997
<TOTAL-ASSETS> 69,637
<TOTAL-OPERATING-REVENUES> 79,513
<NET-INCOME> 6,935
- ----------
[BOOK-VALUE] PER BOOK
</FN>
</TABLE>
