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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549-1004
Form 10-Q
(Mark One)
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the transition period from _______________ to _______________
Commission file number 2-7909
CAMBRIDGE ELECTRIC LIGHT COMPANY
(Exact name of registrant as specified in its charter)
Massachusetts 04-1144610
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
One Main Street, Cambridge, Massachusetts 02142-9150
(Address of principal executive offices) (Zip Code)
(617) 225-4000
(Registrant's telephone number, including area code)
(Former name, address and fiscal year, if changed since last report.)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. YES [ x ] NO [ ]
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Outstanding at
Class of Common Stock November 1, 1996
Common Stock, $25 par value 346,600 shares
The Company meets the conditions set forth in General Instruction H(1)(a) and
(b) of Form 10-Q as a wholly-owned subsidiary and is therefore filing this
Form with the reduced disclosure format.
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PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
CAMBRIDGE ELECTRIC LIGHT COMPANY
CONDENSED BALANCE SHEETS
SEPTEMBER 30, 1996 AND DECEMBER 31, 1995
ASSETS
(Dollars in thousands)
September 30, December 31,
1996 1995
(Unaudited)
PROPERTY, PLANT AND EQUIPMENT, at original cost $158 966 $156 925
Less - Accumulated depreciation 61 195 58 839
97 771 98 086
Add - Construction work in progress 1 284 1 225
99 055 99 311
INVESTMENTS
Equity in nuclear electric power companies 9 515 9 224
Other 5 5
9 520 9 229
CURRENT ASSETS
Cash 729 239
Accounts receivable -
Affiliates 671 2 140
Customers 11 367 10 534
Unbilled revenues 2 980 1 769
Prepaid property taxes 2 581 1 690
Inventories and other 1 860 2 179
20 188 18 551
DEFERRED CHARGES
Yankee Atomic purchased power contract 3 755 4 504
Other 7 958 5 447
11 713 9 951
$140 476 $137 042
See accompanying notes.
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CAMBRIDGE ELECTRIC LIGHT COMPANY
CONDENSED BALANCE SHEETS
SEPTEMBER 30, 1996 AND DECEMBER 31, 1995
CAPITALIZATION AND LIABILITIES
(Dollars in thousands)
September 30, December 31,
1996 1995
(Unaudited)
CAPITALIZATION
Common Equity -
Common stock, $25 par value -
Authorized and outstanding -
346,600 shares, wholly-owned by
Commonwealth Energy System (Parent) $ 8 665 $ 8 665
Amounts paid in excess of par value 27 953 27 953
Retained earnings 10 957 7 561
47 575 44 179
Long-term debt, including premiums, less
maturing debt and current sinking fund
requirements 17 503 21 865
65 078 66 044
CURRENT LIABILITIES
Interim Financing -
Notes payable to banks 18 450 2 675
Advances from affiliates 5 610 2 425
Maturing long-term debt 4 260 20 000
28 320 25 100
Other Current Liabilities -
Current sinking fund requirements 100 160
Accounts payable -
Affiliates 3 776 3 787
Other 9 865 8 870
Accrued taxes -
Local property and other 3 455 1 690
Income 16 731
Accrued interest 280 973
Other 1 606 1 272
19 098 17 483
47 418 42 583
DEFERRED CREDITS
Accumulated deferred income taxes 14 188 13 882
Unamortized investment tax credits 1 872 1 941
Yankee Atomic purchased power contract 3 755 4 504
Other 8 165 8 088
27 980 28 415
COMMITMENTS AND CONTINGENCIES
$140 476 $137 042
See accompanying notes.
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CAMBRIDGE ELECTRIC LIGHT COMPANY
CONDENSED STATEMENTS OF INCOME AND RETAINED EARNINGS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
(Dollars in thousands)
(Unaudited)
Three Months Ended Nine Months Ended
1996 1995 1996 1995
ELECTRIC OPERATING REVENUES $33 513 $34 453 $91 601 $95 566
OPERATING EXPENSES
Electricity purchased for resale,
transmission and fuel 21 750 22 049 59 261 62 343
Other operation and maintenance 5 214 5 984 17 175 18 323
Depreciation 1 086 1 038 3 258 3 114
Taxes -
Income 1 370 1 270 2 641 2 042
Local property 785 793 2 286 2 310
Payroll and other 178 195 643 657
30 383 31 329 85 264 88 789
OPERATING INCOME 3 130 3 124 6 337 6 777
OTHER INCOME 136 176 1 415 461
INCOME BEFORE INTEREST CHARGES 3 266 3 300 7 752 7 238
INTEREST CHARGES
Long-term debt 431 943 1 809 2 834
Other interest charges 412 119 950 432
Allowance for borrowed funds
used during construction (12) (33) (49) (84)
831 1 029 2 710 3 182
NET INCOME 2 435 2 271 5 042 4 056
RETAINED EARNINGS -
Beginning of period 8 522 7 547 7 561 7 166
Dividends on common stock - (1 039) (1 646) (2 443)
End of period $10 957 $ 8 779 $10 957 $ 8 779
See accompanying notes.
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CAMBRIDGE ELECTRIC LIGHT COMPANY
CONDENSED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
(Dollars in thousands)
(Unaudited)
1996 1995
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 5 042 $ 4 056
Effects of noncash items -
Depreciation and amortization 3 258 3 244
Deferred income taxes and investment tax
credits, net 92 232
Earnings from corporate joint ventures (908) (830)
Dividends from corporate joint ventures 617 575
Change in working capital, exclusive of cash and
interim financing 468 (387)
All other operating items (2 392) (183)
Net cash provided by operating activities 6 177 6 707
CASH FLOWS FOR INVESTING ACTIVITIES
Additions to property, plant and equipment
(exclusive of AFUDC) (2 850) (4 360)
Allowance for borrowed funds used during
construction (49) (84)
Net cash used for investing activities (2 899) (4 444)
CASH FLOWS FROM FINANCING ACTIVITIES
Payment of dividends (1 646) (2 443)
Proceeds from (payment of) short-term borrowings 15 775 (1 675)
Advances from affiliates 3 185 1 975
Long-term debt issue refunded (20 000) -
Sinking funds payments (102) (162)
Net cash used for financing activities (2 788) (2 305)
Net increase (decrease) in cash 490 (42)
Cash at beginning of period 239 376
Cash at end of period $ 729 $ 334
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during the period for:
Interest (net of capitalized amounts) $ 3 216 $ 2 707
Income taxes $ 3 049 $ 2 057
See accompanying notes.
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CAMBRIDGE ELECTRIC LIGHT COMPANY
NOTES TO CONDENSED FINANCIAL STATEMENTS
(1) General Information
Cambridge Electric Light Company (the Company) is a wholly-owned
subsidiary of Commonwealth Energy System. The parent company is referred
to in this report as the "System" and together with its subsidiaries is
collectively referred to as "the system." The System is an exempt public
utility holding company under the provisions of the Public Utility Holding
Company Act of 1935 and, in addition to its investment in the Company, has
interests in other utility and several non-regulated companies.
The Company has 151 regular employees including 112 (74%) represented
by a collective bargaining unit. The existing collective bargaining
agreement remains in effect until September 1, 1998.
(2) Significant Accounting Policies
(a) Principles of Accounting
The Company's significant accounting policies are described in Note 2
of Notes to Financial Statements included in its 1995 Annual Report on
Form 10-K filed with the Securities and Exchange Commission. For interim
reporting purposes, the Company follows these same basic accounting
policies but considers each interim period as an integral part of an
annual period and makes allocations of certain expenses to interim periods
based upon estimates of such expenses for the year.
The unaudited financial statements for the periods ended September 30,
1996 and 1995 reflect, in the opinion of the Company, all adjustments
(consisting of only normal recurring accruals) necessary to summarize
fairly the results for such periods. In addition, certain prior period
amounts are reclassified from time to time to conform with the presenta-
tion used in the current period's financial statements.
Income tax expense is recorded using the statutory rates in effect
applied to book income subject to tax recorded in the interim period.
The results for interim periods are not necessarily indicative of
results for the entire year because of seasonal variations in the consump-
tion of energy.
(b) Regulatory Assets and Liabilities
The Company is regulated as to rates, accounting and other matters by
various authorities including the Federal Energy Regulatory Commission
(FERC) and the Massachusetts Department of Public Utilities (DPU).
Based on the current regulatory framework, the Company accounts for
the economic effects of regulation in accordance with the provisions of
Statement of Financial Accounting Standards (SFAS) No. 71, "Accounting for
the Effects of Certain Types of Regulation." The Company has established
various regulatory assets in cases where the DPU and/or the FERC have
permitted or are expected to permit recovery of specific costs over time.
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CAMBRIDGE ELECTRIC LIGHT COMPANY
Similarly, regulatory liabilities established by the Company are required
to be refunded to customers over time. On January 1, 1996, the Company
adopted SFAS No. 121, "Accounting for the Impairment of Long-Lived Assets
and for Long-Lived Assets to be Disposed Of." SFAS No. 121 imposes
stricter criteria for regulatory assets by requiring that such assets be
probable of future recovery at each balance sheet date. As of
September 30, 1996, SFAS No. 121 did not have an impact on the Company's
financial position or results of operations. However, this result may
change as modifications are made in the current regulatory framework
pursuant to electric utility restructuring orders issued by the DPU
including a final order that is expected to be issued by the end of 1996.
For additional discussion of electric industry restructuring activities,
see "Electric Industry Restructuring" in Management's Discussion and
Analysis of Results of Operations in Item 2 of this report.
The principal regulatory assets included in deferred charges were as
follows:
September 30, December 31,
1996 1995
(Dollars in thousands)
Yankee Atomic unrecovered plant
and decommissioning costs $ 3 755 $ 4 504
Postretirement benefit costs
including pensions 2 992 2 807
Other 460 498
$ 7 207 $ 7 809
The regulatory liabilities, reflected in the accompanying balance
sheets and related to deferred income taxes, were $3.1 million at
September 30, 1996 and $3.2 million at December 31, 1995.
(2) Commitments and Contingencies
(a) Construction Program
The Company is engaged in a continuous construction program presently
estimated at $27.2 million for the five-year period 1996 through 2000. Of
that amount, $6.3 million is estimated for 1996. As of September 30, 1996
the Company's actual construction expenditures amounted to $2.9 million,
including an allowance for funds used during construction. The Company
expects to finance these expenditures on an interim basis with internally-
generated funds and short-term borrowings which are ultimately expected to
be repaid with the proceeds from sales of long-term debt securities.
The program is subject to periodic review and revision because of
factors such as changes in business conditions, rates of customer growth,
effects of inflation, maintenance of reliable and safe service, equipment
delivery schedules, licensing delays, availability and cost of capital and
environmental regulations.
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CAMBRIDGE ELECTRIC LIGHT COMPANY
(b) Connecticut Yankee Atomic Power Company Outage
On July 22, 1996, Connecticut Yankee Atomic Power Company (Connecticut
Yankee), which operates the Connecticut Yankee nuclear power plant (the
plant), took the unit out of service in connection with certain safety-
related issues and refueling. While the plant has been out of service,
Connecticut Yankee's owners have evaluated the economics of continuing to
operate the plant over the remaining ten years of its current license
life, compared to the costs of closing the plant and incurring replacement
power for the same period. As a result of this evaluation, on October 9,
1996, Connecticut Yankee announced that a permanent shutdown of the plant
seems likely. Connecticut Yankee's Board of Directors is expected to vote
sometime during the fourth quarter of 1996 on whether to permanently shut
down the plant.
The Company has an equity ownership interest in Connecticut Yankee of
4.5% which, at September 30, 1996, amounted to approximately $4.8 million.
The Company, through its ownership interest, has a corresponding capacity
entitlement and power purchase obligation.
The preliminary estimate of the sum of future payments for the
closing, decommissioning and recovery of the remaining investment in the
plant, assuming permanent shutdown, is approximately $797 million. The
Company's share of these remaining estimated costs is approximately
$36 million. Based upon regulatory precedent, Connecticut Yankee believes
that it would continue to collect from its power purchasers (including the
Company) its decommissioning costs, unrecovered plant investment and other
costs associated with the permanent closure of the plant over the remain-
ing period of the plant's operating license that expires in 2007. The
Company does not believe the ultimate outcome of the early closing of this
plant would have a material adverse effect on its operations and believes
that recovery of these FERC-approved costs would continue to be allowed in
its rates at the retail level.
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CAMBRIDGE ELECTRIC LIGHT COMPANY
Item 2. Management's Discussion and Analysis of Results of Operations
The following is a discussion of certain significant factors which have
affected operating revenues, expenses and net income during the periods
included in the accompanying condensed statements of income. This discussion
should be read in conjunction with the Notes to Condensed Financial Statements
appearing elsewhere in this report.
A summary of the period to period changes in the principal items included
in the condensed statements of income for the three and nine months ended
September 30, 1996 and 1995 and unit sales for these periods is shown below:
Three Months Ended Nine Months Ended
September 30, September 30,
1996 and 1995 1996 and 1995
Increase (Decrease)
(Dollars in thousands)
Electric Operating Revenues $ (940) (2.7)% $(3 965) (4.1)%
Operating Expenses -
Electricity purchased for
resale, transmission and fuel (299) (1.4) (3 082) (4.9)
Other operation and maintenance (770) (12.9) (1 148) (6.3)
Depreciation 48 4.6 144 4.6
Taxes -
Federal and state income 100 7.9 599 29.3
Local property and other (25) (2.5) (38) (1.3)
(946) (3.0) (3 525) (4.0)
Operating Income 6 0.2 (440) (6.5)
Other Income (40) (22.7) 954 206.9
Income Before Interest Charges (34) (1.0) 514 7.1
Interest Charges (198) (19.2) (472) (14.8)
Net Income $ 164 7.2 $ 986 24.3
Unit Sales (Megawatthours or MWH)
Retail (21 539) (6.0) (65 829) (6.5)
Wholesale 28 585 82.1 72 498 76.1
Total unit sales 7 046 1.8 6 669 0.6
The following is a summary of unit sales (in MWH) for the periods
indicated:
Three Months Nine Months
Period Ended Total Retail Wholesale Total Retail Wholesale
September 30,
1996 400 095 336 692 63 403 1 122 455 954 713 167 742
September 30,
1995 393 049 358 231 34 818 1 115 786 1 020 542 95 244
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CAMBRIDGE ELECTRIC LIGHT COMPANY
Operating Revenues, Electricity Purchased For Resale, Transmission and Fuel
For the three and nine months ended September 30, 1996 operating revenues
declined approximately $940,000 (2.7%) and $4 million (4.1%), respectively,
due primarily to lower costs for electricity purchased for resale, transmis-
sion and fuel and decreased levels of retail unit sales.
The Company's total unit sales for the current three and nine-month
periods increased slightly from last year reflecting higher wholesale sales to
the New England Power Pool that were nearly offset by lower retail unit sales
that reflected a significant decline in sales to the Massachusetts Institute
of Technology, a large commercial customer that has constructed its own
cogeneration facility and has elected to receive standby service only (refer
to Part II, Item 1 for additional information pertaining to this issue).
Electricity purchased for resale, transmission and fuel costs decreased
nearly $3.1 million (4.9%) during the first nine months of 1996 due primarily
to lower costs for nuclear power and affiliate Canal Electric Company's
(Canal) Unit 2 which was out of service approximately five months for sched-
uled maintenance and returned to service in mid-August 1996. Unit 2 also
completed a fueling conversion to burn natural gas in addition to oil. These
reductions were offset, in part, by an increase in power purchased from Canal
Unit 1 which was out of service in 1995 from the start of the year until late
July due to a combination of scheduled maintenance and unscheduled extensive
repairs to the turbine. For the current quarter, electricity purchased for
resale, transmission and fuel costs decreased $299,000 (1.4%) due mainly to
lower transmission costs.
Other Operation and Maintenance
For the current quarter and nine-month period, operation and maintenance
decreased $770,000 (12.9%) and $1.1 million (6.3%), respectively, due mainly
to lower costs relating to marketing and customer operations ($47,000 and
$139,000) and, in the current nine-month period, conservation and load
management ($118,000) and buildings and grounds maintenance ($25,000). These
lower costs were offset slightly in the current quarter and nine-month period
by higher insurance and benefit costs of $64,000 and $388,000, respectively.
The current nine-month period also reflects the absence of legal fees
($293,000) associated with the cancellation of a power contract in 1995.
Depreciation and Taxes
For the current quarter and nine-month period, depreciation expense
increased 4.6% due to a higher level of depreciable plant. The increases in
federal and state income taxes for the current quarter and nine-month period
of 7.9% and 29.3%, respectively, were due to higher levels of pretax income.
There were no material changes to local property and payroll-related taxes.
Other Income and Interest Charges
The significant increase in other income for the current nine-month period
was due to the recognition of a gain relating to the sale of a parcel of land
($664,000), a higher rate of return relative to steam production for an
affiliate steam company ($282,000), an increase in non-operating rental income
($53,000) and the timing of dividend payments (offset by lower equity earn-
ings) associated with the Company's investment in nuclear generating companies
($35,000).
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CAMBRIDGE ELECTRIC LIGHT COMPANY
Interest charges for the current three and nine-month periods declined by
nearly 19.2% and 14.8%, respectively, due primarily to the repayment of a $20
million long-term debt issue during the second quarter and to a lesser extent,
normal sinking fund payments. This overall decline was partially offset by
higher short-term interest costs due to a significantly higher average level
of short-term bank borrowings that reflect the use of short-term funds to
repay a maturing long-term debt issue. The weighted average short-term
interest rate dropped to 5.5% compared to 6.0% for both current periods in
1995 and had only a minimal impact on interest costs.
Electric Industry Restructuring
On August 16, 1995, the DPU issued an order calling for the restructuring
of the electric utility industry in Massachusetts. The DPU's intent is to
reduce electric costs to consumers by providing customers with the opportunity
to choose their electric power provider while retail electric companies such
as the Company and affiliate Commonwealth Electric Company (the Companies)
continue to provide transmission and distribution services. On May 1, 1996,
the DPU issued an order containing proposed rules for implementing electric
industry restructuring.
The proposed rules, which were the subject of public comment and hearings
during June and July 1996, provide for:
(1) the establishment of an independent system operator to operate the
regional transmission system;
(2) a power exchange to manage a competitive bidding pool for short-
term power sales;
(3) functional separation of electric companies into generation, trans-
mission and distribution corporate entities;
(4) preservation of discounts for low-income customers, shut-off
protections and provision of service to all customers;
(5) registration requirements for generation suppliers;
(6) options for phased incentives for electric companies to divest
their generation assets;
(7) promotion of environmental goals;
(8) support for energy efficiency and renewable energy resources;
(9) a price cap system of incentive regulation for the remaining
distribution and transmission functions;
(10) unbundling of rates on bills into separate components of transmis-
sion, distribution and energy, and implementation of a competitive
generation market by January 1, 1998; and
(11) a reasonable opportunity for recovery of stranded cost.
On August 9, 1996, the DPU issued an order delaying the issuance of final
rules until the end of 1996. The DPU also stated that it will issue a revised
schedule for electric companies to make company-specific unbundled rate
filings.
Although the DPU has not yet issued its revised rate filing schedule, the
Companies anticipate filing their revenue-neutral, unbundled rates in early
1997 after the issuance of the DPU's final rules. Also, during 1997, the
Companies will file their comprehensive restructuring plan. One element of
the Companies' plan (announced on February 15, 1996) calls for the auctioning,
in a competitive market, of their capacity entitlement (1,140 MW) in all of
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CAMBRIDGE ELECTRIC LIGHT COMPANY
their twenty-one power contracts in an effort to develop a competitive market
whereby customers would have the flexibility of choosing their electric
supplier. The entitlements include contracts for power from Canal Units 1 and
2 and Seabrook Unit 1, which are owned or jointly owned by the System's
generating subsidiary Canal Electric Company. The Companies' plan provides
for total recovery of the difference between the current market value of the
Companies' power contracts and their unavoidable costs. Under the Companies'
plan, this difference, a component of what is often referred to as stranded
cost, would be recovered through a non-bypassable access charge paid over an
appropriate time period by all customers in the Companies' service areas.
The DPU's May 1 order reaffirmed that one of its transition principles is
to seek near-term rate relief for electric customers. Also, the DPU's
proposed rules would limit the period for recovery of net, non-mitigable
stranded cost to a ten-year period (January 1, 1998 through December 31,
2007.) Recovery of stranded cost depends upon the timing, nature, and degree
of competition that may result from future changes in regulatory policies
governing the Companies' activities and prices, as well as future power costs
and market prices of power. The Companies' single largest component of
stranded cost relates to their purchased power contracts with non-utility
generators. Based on their analyses of the DPU's effort, the Companies would
be unable to recover a substantial portion of their stranded cost within the
ten-year period without rate increases. However, while the Companies are
unable to predict the ultimate outcome of restructuring, it is important to
note that a recent proposed settlement agreement presented by another utility
to the DPU includes a provision that lengthens the timeframe for recovery of
certain stranded costs to their original lives thus making it possible for
that company to fully recover all stranded costs without a significant rate
increase. That settlement agreement is currently under review by the DPU.
Generally accepted accounting principles require that losses be accrued
in full when costs to complete a contract are expected to exceed related
revenues expected to be realized. To the extent that the Companies determine
that they will be unable to recover costs associated with their purchased
power contracts, the Companies would be required to take an immediate charge
against earnings when such a loss is probable and estimable. Statement of
Financial Accounting Standards No. 121 - "Accounting for the Impairment of
Long-Lived Assets and for Long-Lived Assets to be Disposed Of" (SFAS No. 121)
which became effective for 1996, requires impairment losses on long-lived
assets to be recognized when the book value of an asset exceeds its expected
future cash flows. This standard also imposes stricter criteria for the
retention of regulatory-created assets by requiring that such assets be
probable of future recovery at each balance sheet date. To the extent such
recovery is not probable at the balance sheet date, the Companies would be
required to take a charge against earnings in that period.
The Companies currently account for the economic effects of regulation in
accordance with the provisions of Statement of Financial Accounting Standards
No. 71 - "Accounting for the Effects of Certain Types of Regulation" (SFAS No.
71) based on the cost-of-service regulatory framework in which they operate.
The DPU has proposed that the distribution and transmission functions of their
businesses be regulated under a form of price capped incentive regulation.
In the event that recovery of specific costs through rates becomes
unlikely or uncertain for all or a portion of the Companies' utility opera-
tions, whether resulting from the expanding effects of competition or specific
regulatory actions which move the Companies away from cost-of-service rate-
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CAMBRIDGE ELECTRIC LIGHT COMPANY
making, SFAS No. 71 would no longer apply. While the Companies are unable to
predict the final rules which may be adopted by the DPU in its restructuring
proposal, the Companies could be required to discontinue the application of
SFAS No. 71. Discontinuance of SFAS No. 71 would cause the write-off of the
applicable portions of their regulatory assets which would have an adverse
impact on the Companies' financial position and results of operations. The
Companies will challenge any order that would have a significant adverse
impact on them, including attempts to limit their recovery of stranded cost.
<PAGE>
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CAMBRIDGE ELECTRIC LIGHT COMPANY
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
The Company is subject to legal claims and matters arising from
its course of business including involvement in a court action filed
by the Massachusetts Institute of Technology (MIT) relating to a
September 1995 decision of the DPU approving the Company's customer
transition charge (CTC) for the recovery of stranded cost. In this
action, MIT has filed an appeal of the DPU decision to the Massachu-
setts Supreme Judicial Court (SJC). The Company is an intervenor in
this proceeding. In accordance with the briefing schedule, MIT filed
its initial brief on October 21, 1996. The Company is scheduled to
file its brief on November 20, 1996, with MIT to file its reply brief
on December 5, 1996. While no schedule is set for a decision from the
SJC, the Company anticipates a decision sometime in the second quarter
of 1997. This issue is discussed more fully in the Company's 1995
Annual Report on Form 10-K. At this time, management is unable to
predict the outcome of this proceeding.
In a previous legal proceeding, on August 27, 1996, the United
States District Court for the District of Massachusetts (District
Court) granted the motions for summary judgement of the Company and
the DPU and dismissed the May 1996 complaint filed by MIT. In its
complaint, MIT had alleged that the CTC approved by the DPU and
implemented by the Company violated the Public Utility Regulatory
Policies Act of 1978 (PURPA). In dismissing MIT's complaint, the
District Court found that MIT's complaint involved an allegation
relating to the DPU's application of PURPA, which is not within the
Court's jurisdiction.
Item 5. Other Information
None
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
Exhibit 27 - Financial Data Schedule.
Filed herewith as Exhibit 1 is the Financial Data Schedule for the
nine months ended September 30, 1996.
(b) Reports on Form 8-K
No reports on Form 8-K were filed during the three months ended
September 30, 1996.
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CAMBRIDGE ELECTRIC LIGHT COMPANY
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CAMBRIDGE ELECTRIC LIGHT COMPANY
(Registrant)
Principal Financial and
Accounting Officer:
Date: November 13, 1996 JAMES D. RAPPOLI
James D. Rappoli,
Financial Vice President
and Treasurer
<TABLE> <S> <C>
<ARTICLE> UT
<LEGEND>
This schedule contains summary financial information extracted from the
balance sheet, statement of income and statement of cash flows contained in
Form 10-Q of Cambridge Electric Light Company for the nine months ended
September 30, 1996 and is qualified in its entirety by reference to such
financial statements.
</LEGEND>
<CIK> 0000016573
<NAME> CAMBRIDGE ELECTRIC LIGHT COMPANY
<MULTIPLIER> 1,000
<S> <C>
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1996
<PERIOD-TYPE> 9-MOS
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 99,055
<OTHER-PROPERTY-AND-INVEST> 9,520
<TOTAL-CURRENT-ASSETS> 20,188
<TOTAL-DEFERRED-CHARGES> 11,713
<OTHER-ASSETS> 0
<TOTAL-ASSETS> 140,476
<COMMON> 8,665
<CAPITAL-SURPLUS-PAID-IN> 27,953
<RETAINED-EARNINGS> 10,957
<TOTAL-COMMON-STOCKHOLDERS-EQ> 47,575
0
0
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