Dear Shareholder:
Our industry continues to grab headlines around the country as changes
in regulation bring increased competition and customer choice. This move to a
competitive electric industry also creates significant new opportunities for
energy service providers, like Boston Edison, in new businesses. Pursuit of
these new opportunities is a key element of our strategy for long-term growth to
benefit our shareholders, customers and employees. This strategy is described
more fully in the Annual Report you received in April.
Recently you received a proxy statement asking you to vote for a
proposal to form a holding company for Boston Edison, to be called BEC Energy. I
want to emphasize again the importance of this proposal to the Company. A
holding company structure will provide increased financial, managerial and
flexibility to operate effectively in this changing environment. This structure
will also allow the Company to separate regulated and unregulated lines of
business consistent with principles outlined by the Massachusetts Department of
Public Utilities.
For these reasons, the management and Board of Directors consider a
holding company structure to be in the best interest of shareholders. Although
the formal legal structure will change, our current operations will not. We will
have the same assets, customers, revenues and the same management will be in
place. Your Proxy Statement/Prospectus contains a more extensive discussion of
the proposal. Your vote, regardless of the number of shares you own, is critical
to achieving a successful outcome. We have retained D.F. King to assist us in
this important proxy solicitation effort. If you have any questions concerning
your proxy vote, please call 1-800-859-8508.
The remainder of this report describes other important developments at
Boston Edison during the first quarter.
Thomas J. May
Chairman, President and Chief Executive Officer
April 18, 1997