<PAGE 1>
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 March 31, 1999
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number 2-1647
COMMONWEALTH GAS COMPANY
(Exact name of registrant as specified in its charter)
Massachusetts 04-1989250
(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 May 1, 1999
Common Stock, $25 par value 2,857,000 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
COMMONWEALTH GAS COMPANY
CONDENSED BALANCE SHEETS
MARCH 31, 1999 AND DECEMBER 31, 1998
ASSETS
(Dollars in thousands)
March 31, December 31,
1999 1998
(Unaudited)
PROPERTY, PLANT AND EQUIPMENT, at original cost$394,335 $392,612
Less - Accumulated depreciation 125,772 120,811
268,563 271,801
Add - Construction work in progress 1,141 1,066
269,704 272,867
CURRENT ASSETS
Cash 1,201 427
Advances to affiliates 14,025 -
Accounts receivable 61,507 39,741
Unbilled revenues 8,250 10,358
Inventories, at average cost 13,134 25,885
Prepaid taxes -
Property 889 3,135
Income - 5,034
Other 605 874
99,611 85,454
DEFERRED CHARGES
Regulatory assets 19,859 19,616
Other 5,752 5,307
25,611 24,923
$394,926 $383,244
See accompanying notes.
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COMMONWEALTH GAS COMPANY
CONDENSED BALANCE SHEETS
MARCH 31, 1999 AND DECEMBER 31, 1998
CAPITALIZATION AND LIABILITIES
(Dollars in thousands)
March 31, December 31,
1999 1998
(Unaudited)
CAPITALIZATION
Common Equity -
Common stock, $25 par value -
Authorized and outstanding -
2,857,000 shares, wholly-owned by
Commonwealth Energy System (Parent) $ 71,425 $ 71,425
Amounts paid in excess of par value 27,739 27,739
Retained earnings 33,383 17,998
132,547 117,162
Long-term debt, less current sinking
fund requirements 102,150 102,150
234,697 219,312
CURRENT LIABILITIES
Interim Financing -
Advances from affiliates - 30,825
Other Current Liabilities -
Current sinking fund requirements 3,650 3,650
Accounts payable -
Affiliates 3,813 2,527
Other 20,444 27,153
Accrued taxes -
Income 3,943 -
Local property and other 2,785 3,251
Other 48,088 20,457
82,723 57,038
82,723 87,863
DEFERRED CREDITS
Accumulated deferred income taxes 41,467 40,767
Unamortized investment tax credits 5,215 5,263
Other 30,824 30,039
77,506 76,069
$394,926 $383,244
See accompanying notes.
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COMMONWEALTH GAS COMPANY
CONDENSED STATEMENTS OF INCOME AND RETAINED EARNINGS
FOR THE THREE MONTHS ENDED MARCH 31, 1999 AND 1998
(Dollars in thousands - unaudited)
1999 1998
GAS OPERATING REVENUES $110,320 $108,788
OPERATING EXPENSES
Cost of gas sold 52,913 55,545
Other operation and maintenance 21,240 19,850
Depreciation 4,656 4,658
Taxes -
Income 9,590 8,456
Local property 2,823 2,727
Payroll and other 1,141 1,119
92,363 92,355
OPERATING INCOME 17,957 16,433
OTHER INCOME 276 180
INCOME BEFORE INTEREST CHARGES 18,233 16,613
INTEREST CHARGES
Long-term debt 2,104 2,186
Other interest charges 744 719
2,848 2,905
NET INCOME 15,385 13,708
RETAINED EARNINGS -
Beginning of period 17,998 16,871
Dividends on common stock - -
RETAINED EARNINGS -
End of period $ 33,383 $ 30,579
See accompanying notes.
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COMMONWEALTH GAS COMPANY
CONDENSED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1999 AND 1998
(Dollars in thousands - unaudited)
1999 1998
OPERATING ACTIVITIES
Net income $ 15,385 $ 13,708
Effects of noncash items -
Depreciation and amortization 5,304 5,614
Deferred income taxes and investment
tax credits, net 567 207
Change in working capital, exclusive of cash,
advances to affiliates and interim financing 26,327 11,851
All other operating items (120) 1,392
Net cash provided by operating activities 47,463 32,772
INVESTING ACTIVITIES
Additions to property, plant and equipment
(inclusive of AFUDC) (1,839) (2,875)
Advances to affiliates (14,025) -
Net cash used for investing activities (15,864) (2,875)
FINANCING ACTIVITIES
Payment of short-term borrowings - (30,925)
Proceeds from (payments to) affiliates (30,825) 600
Net cash used for financing activities (30,825) (30,325)
Net increase (decrease) in cash 774 (428)
Cash at beginning of period 427 1,867
Cash at end of period $ 1,201 $ 1,439
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during the period for:
Interest, net of amounts capitalized $ 2,716 $ 2,738
Income taxes $ 3,122 $ 1,864
See accompanying notes.
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COMMONWEALTH GAS COMPANY
NOTES TO CONDENSED FINANCIAL STATEMENTS
(1) General Information
Commonwealth Gas Company (the Company) is a wholly-owned subsidiary
of Commonwealth Energy System. The parent company is referred to in this
report as the "Parent" and together with its subsidiaries is collectively
referred to as "COM/Energy." The Parent 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. In
December 1998, the Parent signed an Agreement and Plan of Merger with BEC
Energy, the parent company of Boston Edison Company, that will create an
energy delivery company serving approximately 1.3 million customers
located entirely within Massachusetts including more than one million
electric customers in 81 communities and the Company's 240,000 gas
customers in 51 communities.
The Company has 600 regular employees including 406 (68%) who are
represented by three collective bargaining units with contracts in place
until March and June of 2002 and April of 2003.
(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 1998 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 revenue from firm sales for the year.
Generally, certain expenses which relate to more than one interim
period are allocated to other periods to more appropriately match
revenues and expenses. Principal items of expense which are allocated
other than on the basis of passage of time are depreciation and property
taxes. These expenses are recorded for interim reporting purposes based
upon projected gas revenue. Income tax expense is recorded using the
statutory rates in effect applied to book income subject to tax recorded
in the interim period.
The unaudited financial statements for the periods ended March 31,
1999 and 1998 reflect, in the opinion of the Company, all adjustments
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 presentation used in the current period's financial
statements.
The results for interim periods are not necessarily indicative of
results for the entire year because of variations in gas consumption due
to the heating season and also because of the Company's seasonal rate
structure.
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COMMONWEALTH GAS COMPANY
(b) Regulatory Assets and Liabilities
The Company is regulated as to rates, accounting and other matters
by the Massachusetts Department of Telecommunications and Energy (DTE).
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 DTE has
permitted or is expected to permit recovery of specific costs over time.
If all or a separable portion of the Company's operations becomes no
longer subject to the provisions of SFAS No. 71, a write-off of related
regulatory assets and liabilities would be required, unless some form of
transition cost recovery continues through rates established and
collected for the Company's remaining regulated operations. In addition,
the Company would be required to determine any impairment to the carrying
costs of deregulated plant and inventory assets.
The principal regulatory assets included in deferred charges were as
follows:
March 31, December 31,
1999 1998
(Dollars in thousands)
Postretirement benefits costs $ 8,309 $ 8,568
FERC Order 636 transition costs 6,206 5,968
Environmental costs 5,344 5,080
$19,859 $19,616
The principal regulatory liability, reflected in deferred credits-
other and relating to income taxes, was $8 million at March 31, 1999 and
December 31, 1998.
(3) Commitments
Construction Program
The Company is engaged in a continuous construction program presently
estimated at $93.4 million for the five-year period 1999 through 2003. Of
that amount, $18.6 million is estimated for 1999. As of March 31, 1999,
the Company's actual construction expenditures amounted to approximately
$1.8 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 the issuance of long-term
debt and/or equity securities.
The program is subject to periodic review and revision because of
factors such as changes in business conditions, rates of growth, effects
of inflation, equipment delivery schedules, licensing delays, availability
and cost of capital and environmental regulations.
<PAGE>
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COMMONWEALTH GAS 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 months ended March 31,
1999 and 1998 is shown below:
Three Months
Ended March 31,
1999 and 1998
Increase (Decrease)
(Dollars in thousands)
Gas Operating Revenues $ 1,532 1.4 %
Operating Expenses -
Cost of gas sold (2,632) (4.7)
Other operation and maintenance 1,390 7.0
Depreciation (2) -
Taxes -
Federal and state income 1,134 13.4
Local property and other 118 3.1
8 -
Operating Income 1,524 9.3
Other Income 96 53.3
Income Before Interest Charges 1,620 9.8
Interest Charges (57) (2.0)
Net Income $ 1,677 12.2
Firm Unit Sales BBTU 1,840 12.7
The following is a summary of total throughput for the periods indicated:
Total Throughput - In Billions of British Thermal Units (BBTU)
Total
Interruptible Total Trans- Through-
Firm and Other Sales portation put
Three Months Ended
March 31, 1999 16,298 1,899 18,197 2,781 20,978
March 31, 1998 14,458 1,563 16,021 3,159 19,180
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COMMONWEALTH GAS COMPANY
Operating Revenues and Unit Sales
Operating revenues for the current quarter increased by $1.5 million due
primarily to the 13.6% increase in unit sales and a $1.4 million increase in
transportation revenues offset, in part, by a $2.6 million decrease in the
cost of gas sold.
The increase in unit sales to firm customers reflects higher sales to all
customer segments due to cooler weather conditions experienced during the
first quarter of 1999 compared to the same period last year. Heating degree
days for the quarter were 7.6% greater than the first quarter of 1998 but 7.2%
less than normal. The fluctuation in interruptible and other sales reflects
the competitive market that exists today in the natural gas industry.
Other Operation and Maintenance
The $1.4 million (7%) increase in other operation and maintenance costs
for the current quarter reflects higher costs associated with a services
company affiliate which provides accounting, legal, computer-related and other
services (approximately $600,000), and the absence in the current period of an
adjustment to year-end 1997 payroll (made in January 1998) related to the 1997
personnel reduction program ($527,000). Also contributing to the increase
were higher maintenance costs associated with the Company's distribution
system ($188,000).
Taxes
The increase in federal and state income taxes was due to the level of
pre-tax income. Local property and other taxes increased due primarily to
higher tax rates and valuations in the Company's service territory.
Other Income
The increase in other income for the first quarter of 1999 was due
primarily to higher revenues associated with the Company's merchandising
program for water heaters and heating systems.
Environmental Matters
The Company is participating in the assessment of a number of former
manufactured gas plant (MGP) sites and alleged MGP waste disposal locations to
determine if and to what extent such sites have been contaminated and whether
the Company may be responsible for remedial actions. The DTE has approved
recovery of costs associated with MGP sites. The Company is also involved in
certain other known or potentially contaminated sites where the associated
costs may not be recoverable in rates. For further information on other
related environmental matters, refer to the Company's 1998 Annual Report on
Form 10-K.
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COMMONWEALTH GAS COMPANY
Gas Industry Restructuring
Unbundled Gas Rates
New unbundled rates for the Company went into effect on November 1, 1998.
The unbundled rates were developed in accordance with a Settlement Agreement
reached by participants in the Massachusetts Gas Unbundling Collaborative (the
Collaborative) that was filed with the Massachusetts Department of
Telecommunications and Energy on June 29, 1998 and approved on August 15,
1998. The new unbundled rates reflect the separation of the Company's gas
supply function from its local distribution function.
Commencing with the billing month of November 1998, the Company has a
Seasonal Cost of Gas Adjustment Clause (CGAC) and a Local Distribution
Adjustment Clause (LDAC) that provide for the recovery, from firm customers or
Default Service customers, of certain costs previously recovered through base
rates. The CGAC provides for rates that must be approved semi-annually by the
DTE. The LDAC provides for rates that require annual approval.
As part of its new unbundled rates, the Company modified its existing CGAC
to allow for the following changes: (a) the addition of provisions that allow
for the recovery of certain bad-debt expenses; (b) new formulas that no longer
adjust the Gas Adjustment Factors for the seasonal embedded gas costs that
were in existing sales rates; (c) updated provisions reflecting the ratemaking
requirements for non-core revenue margins; and (d) the removal of provisions
for the recovery of environmental remediation costs and FERC Order 636
transition costs, which will instead be recovered through the LDAC.
The Company's new LDAC recovers conservation charges, environmental
remediation costs, balancing penalty revenue credits, and costs associated
with its participation in the Collaborative.
For additional information related to gas industry restructuring, refer to
the Company's 1998 Annual Report on Form 10-K.
Merger with BEC Energy
The electric utility industry has continued to change in response to
legislative and regulatory mandates that are aimed at lowering prices for
energy by creating a more competitive marketplace. These pressures have
resulted in an increasing trend in the electric industry to seek competitive
advantages and other benefits through business combinations. On December 5,
1998, the Parent and BEC Energy (BEC), headquartered in Boston, Massachusetts,
entered into an Agreement and Plan of Merger (the Merger Agreement). Pursuant
to the Merger Agreement, the Parent and BEC will be merged into a new holding
company to be known as NSTAR. The merger is expected to occur shortly after
the satisfaction of certain conditions, including the receipt of certain
regulatory approvals including that of the DTE. The regulatory approval
process is expected to be completed during the second half of 1999.
The merger will create an energy delivery company serving approximately
1.3 million customers located entirely within Massachusetts, including more
than one million electric customers in 81 communities and the Company's
240,000 gas customers in 51 communities.
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COMMONWEALTH GAS COMPANY
Shareholder votes on the merger will be held as part of each of the
Parent's and BEC's annual shareholder meetings scheduled for June 24, 1999.
The Merger Agreement may be terminated under certain circumstances, including
by any party if the merger is not consummated by December 5, 1999, subject to
an automatic extension of six months if the requisite regulatory approvals
have not yet been obtained by such date. The merger will be accounted for
using the purchase method of accounting.
Upon effectiveness of the merger, Thomas J. May, BEC's current Chairman,
President and Chief Executive Officer (CEO), will become the Chairman and CEO
of NSTAR. Russell D. Wright, the Parent's current President and CEO, will
become the President and Chief Operating Officer of NSTAR and will serve on
NSTAR's board of trustees. Also, upon effectiveness of the merger, NSTAR's
board of trustees will consist of the Parent's and BEC's current trustees.
Year 2000
The Year 2000 issue is the result of computer programs being written using
two digits rather than four to define the applicable year. Any computer
program that has date sensitive software may recognize a date using "00" as
the year 1900 rather than the year 2000. This could result in a temporary
inability to process transactions or engage in normal business activities.
COM/Energy has been involved in Year 2000 compliancy since 1996.
COM/Energy, on a coordinated basis and with the assistance of RCG Informa-
tion Technologies and other consultants, is addressing the Year 2000 issue.
COM/Energy has followed a five-phase process in its Year 2000 compliance
efforts, as follows: Awareness (through a series of internal announcements to
employees and through contacts with vendors); Inventory (all computers,
applications and embedded systems that could potentially be affected by the
Year 2000 problem); Assessment (all applications or components and the impact
on overall business operations and a plan to correct deficiencies and the cost
to do so); Remediation (the modification, upgrade or replacement of deficient
hardware and software applications and infrastructure modifications); and
Testing (a detailed, comprehensive testing program for the modified critical
component, system or software that involves the planning, execution and
analysis of results).
COM/Energy's inventory phase required an assessment of all date sensitive
information and transaction processing computer systems and determined that
approximately 90% of its software systems needed some modifications or
replacement. Plans were developed and are being implemented to correct and
test all affected systems, with priorities assigned based on the importance of
the activity. COM/Energy has identified the software and hardware installa-
tions that are necessary. All installations are expected to be completed and
tested by mid-1999.
COM/Energy has also inventoried its non-information technology systems
that may be date sensitive (facilities, electric and gas operations, energy
supply/production and distribution) that use embedded technology such as
micro-controllers and micro-processors. COM/Energy has completed its assess-
ment of these non-information technology systems and determined that 20% of
these systems required remediation or replacement. COM/Energy is approxi-
mately 94% complete in its efforts to resolve non-compliance with Year 2000<PAGE>
<PAGE 12>
COMMONWEALTH GAS COMPANY
requirements related to these systems and anticipates that these systems
willbe updated or replaced as necessary and tested by mid-1999.
At present, the remediation phase for information technology as it applies
to hardware and non-technology issues is scheduled for completion by June 1,
1999. The testing phase for Year 2000 compliance is approximately 85%
complete and is scheduled to be concluded by June 30, 1999. All other phases
are complete.
Modifying and testing COM/Energy's information and transaction processing
systems from 1996 through 2000 is currently expected to cost approximately
$9.85 million, including approximately $900,000, $3.1 million and $1.9 million
incurred through 1997, 1998 and the first quarter of 1999, respectively.
Approximately $3.95 million is expected to be spent in the remainder of 1999
and in 2000. Year 2000 costs have been expensed as incurred and will continue
to be funded from operations.
In addition to its internal efforts, COM/Energy has initiated formal
communications with its significant suppliers to determine the extent to which
COM/Energy may be vulnerable to its suppliers' failure to correct their own
Year 2000 issues. As of April 1, 1999, COM/Energy has received responses from
approximately 82% of those entities contacted, and nearly all have indicated
that they are or will be Year 2000 compliant. Failure of COM/Energy's
significant suppliers to address Year 2000 issues could have a material
adverse effect on COM/Energy's operations, although it is not possible at this
time to quantify the amount of business that might be lost or the costs that
could be incurred by COM/Energy. Contact with significant vendors is continu-
ing and inadequate or marginal responses arebeing pursued by COM/Energy.
COM/Energy is prepared to replace certain suppliers or to initiate other
contingency plans should these vendors not respond to COM/Energy's satisfac-
tion by July 1, 1999.
In addition, parts of the global infrastructure, including national
banking systems, electrical power grids, gas pipelines, transportation
facilities, communications and governmental activities, may not be fully
functional after 1999. Infrastructure failures could significantly reduce
COM/Energy's ability to acquire energy and its ability to serve its customers
as effectively as they are now being served. COM/Energy is identifying
elements of the infrastructure that are critical to its operations and is
obtaining information as to the expected Year 2000 readiness of these ele-
ments.
COM/Energy has started its contingency planning for critical operational
areas that might be effected by the Year 2000 issue if compliance by
COM/Energy is delayed. COM/Energy's gas and electric operations currently
have emergency operating plans as well as information technology disaster
recovery plans as components of its standard operating procedures. These
plans will be enhanced to identify potential Year 2000 risks to normal
operations and the appropriate reaction to these potential failures including
contingency plans that may be required for any third parties that fail to
achieve Year 2000 compliance. All necessary contingency plans are expected to
be completed by June 30, 1999, although in certain cases, especially infra-
structure failures, there may be no practical alternative course of action
available to COM/Energy.
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COMMONWEALTH GAS COMPANY
COM/Energy is working with other energy industry entities, both regionally
and nationally with respect to Year 2000 readiness and is cooperating in the
development of local and wide-scale contingency planning.
While COM/Energy believes its efforts to address the Year 2000 issue will
allow it to be successful in avoiding any material adverse effect on
COM/Energy's operations or financial condition, it recognizes that failing to
resolve Year 2000 issues on a timely basis would, in a "most reasonably likely
worst case scenario," significantly limit its ability to acquire and distrib-
ute energy and process its daily business transactions for a period of time,
especially if such failure is coupled with third party or infrastructure
failures. Similarly, COM/Energy could be significantly effected by the
failure of one or more significant suppliers, customers or components of the
infrastructure to conduct their respective operations after 1999. Adverse
affects on COM/Energy could include, among other things, business disruption,
increased costs, loss of business and other similar risks.
The foregoing discussion regarding Year 2000 project timing, effective-
ness, implementation and costs includes forward-looking statements that are
based on management's current evaluation using available information. Factors
that might cause material changes include,but are not limited to, the
availability of key Year 2000 personnel, the readiness of third parties, and
COM/Energy's ability to respond to unforeseen Year 2000 complications.
New Accounting Standard
In June 1998, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 133 (SFAS No. 133), "Accounting for
Derivative Instruments and Hedging Activities." SFAS No. 133 establishes
accounting and reporting standards requiring that every derivative instrument
(including certain derivative instruments embedded in other contracts possibly
including fixed-price gas supply contracts) be recorded on the balance sheet
as either an asset or liability measured at its fair value. SFAS No. 133
requires that changes in the derivative's fair value be recognized currently
in earnings unless specific hedge accounting criteria are met. Special
accounting for qualifying hedges allows a derivative's gains and losses to
offset related results on the hedged item in the income statement, and
requires that a company must formally document, designate and assess the
effectiveness of transactions that receive hedge accounting.
SFAS No. 133 is effective for fiscal years beginning after June 15, 1999
and may be implemented as of the beginning of any fiscal quarter after
issuance but cannot be applied retroactively. SFAS No. 133 must be applied to
derivative instruments and certain derivative instruments embedded in hybrid
contracts that were issued, acquired or substantively modified after December
31, 1997 and, at the company's election, before January 1, 1998.
The Company has not yet quantified the impacts of adopting SFAS No. 133 on
its financial statements and has not determined the timing of its method of
adopting SFAS No. 133.
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COMMONWEALTH GAS COMPANY
Forward-Looking Statements
This discussion contains statements which, to the extent it is not a
recitation of historical fact, constitute "forward-looking statements" and is
intended to be subject to the safe harbor protection provided by the Private
Securities Litigation Reform Act of 1995. A number of important factors
affecting the Company's business and financial results could cause actual
results to differ materially from those reflected in the forward-looking
statements or projected amounts. Those factors include developments in the
legislative, regulatory and competitive environment, certain environmental
matters, demands for capital and the availability of cash from various
sources.
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<PAGE 15>
COMMONWEALTH GAS COMPANY
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
The Company is not a party to any pending material legal proceeding.
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
three months ended March 31, 1999.
(b) Reports on Form 8-K
No reports on Form 8-K were filed for the three months ended March
31, 1999.
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COMMONWEALTH GAS COMPANY
SIGNATURES
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.
COMMONWEALTH GAS COMPANY
(Registrant)
Principal Financial and
Accounting Officer:
JAMES D. RAPPOLI
James D. Rappoli,
Financial Vice President
and Treasurer
Date: May 17, 1999
<TABLE> <S> <C>
<ARTICLE> UT
<LEGEND>
This schedule contains summary financial information extracted from the
balance sheet, statement of income, statement of retained earnings and
statement of cash flows contained in Form 10-Q of Commonwealth Gas Company for
the three months ended March 31, 1999 and is qualified in its entirety by
reference to such financial statements.
</LEGEND>
<CIK> 0000022620
<NAME> COMMONWEALTH GAS COMPANY
<MULTIPLIER> 1,000
<S> <C>
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<PERIOD-END> MAR-31-1999
<PERIOD-TYPE> 3-MOS
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<TOTAL-NET-UTILITY-PLANT> 269,704
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<CASH-FLOW-OPERATIONS> 47,463
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
