UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1996
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 No. 1-8369
CONNECTICUT ENERGY CORPORATION
(Exact name of registrant as specified in its charter)
Connecticut 06-0869582
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
855 Main Street
Bridgeport, Connecticut 06604
(Address of principal executive offices) (Zip Code)
(203) 579-1732
(Registrant's telephone number, including area code)
(Former name, former address and former
fiscal year, if changed since last report)
Indicate by check 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.
Class Outstanding at August 5, 1996
----- -----------------------------
Common Stock, $1 par value 8,979,462
<TABLE>
<CAPTION>
PART I. FINANCIAL INFORMATION
CONNECTICUT ENERGY CORPORATION
ITEM 1. FINANCIAL STATEMENTS
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share)
(Unaudited)
<S> <C> <C> <C> <C>
Three Months Ended Nine Months Ended
June 30, June 30,
------------------------ -------------------------
1996 1995 1996 1995
---- ---- ---- ----
Operating Revenues..................... $ 43,954 $ 39,755 $ 233,918 $ 208,562
Purchased gas.......................... 22,827 20,692 127,086 103,967
--------- --------- --------- ---------
Gross margin........................... 21,127 19,063 106,832 104,595
Operating Expenses:
Operations........................... 11,130 11,177 37,723 39,091
Maintenance.......................... 848 872 2,959 2,868
Depreciation......................... 3,639 3,551 11,113 10,500
Federal and state income taxes....... (809) (1,125) 11,811 10,786
Municipal, gross earnings and
other taxes........................ 3,582 3,385 14,134 13,087
--------- --------- --------- ---------
Total operating expenses............... 18,390 17,860 77,740 76,332
--------- --------- --------- ---------
Operating income....................... 2,737 1,203 29,092 28,263
Other deductions, net.................. 191 31 443 351
Interest Expense:
Interest on long-term debt and
amortization of debt issue costs... 2,700 2,713 8,103 8,145
Other interest, net.................. 530 444 1,566 1,096
--------- --------- --------- ---------
Total interest expense................. 3,230 3,157 9,669 9,241
--------- --------- --------- ---------
Net (Loss) Income...................... $ (684) $ (1,985) $ 18,980 $ 18,671
========= ========= ========= =========
Net (loss) income per share............ $ (.08) $ (0.23) $ 2.13 $ 2.13
========= ========= ========= =========
Dividends paid per share............... $ 0.33 $ 0.325 $ 0.98 $ 0.975
--------- --------- --------- ---------
Weighted average number of common
shares outstanding during period..... 8,942,188 8,796,699 8,905,632 8,753,667
--------- --------- --------- ---------
See Notes to Consolidated Financial Statements.
</TABLE>
<TABLE>
<CAPTION>
CONNECTICUT ENERGY CORPORATION
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share)
<S> <C> <C>
June 30, Sept. 30,
1996 1995
--------- ---------
(Unaudited)
Assets
------
Utility Plant:
Gross utility plant......................................... $367,492 $354,847
Less: accumulated depreciation .............................. 115,711 107,244
-------- --------
Net utility plant........................................... 251,781 247,603
Nonutility property, net...................................... 2,792 2,541
-------- --------
Net utility plant and other property.......................... 254,573 250,144
-------- --------
Current Assets:
Cash and cash equivalents................................... 4,440 4,635
-------- --------
Accounts receivable......................................... 46,687 27,009
Less: allowance for doubtful accounts....................... 3,536 3,553
-------- --------
Net accounts receivable................................... 43,151 23,456
-------- --------
Accrued utility revenues, net............................... 2,788 2,675
Unrecovered purchased gas costs............................. --- 2,972
Inventories................................................. 11,030 13,115
Prepaid expenses............................................ 2,123 2,247
-------- --------
Total current assets.......................................... 63,532 49,100
-------- --------
Deferred Charges and Other Assets:
Unamortized debt expenses................................... 5,997 6,090
Unrecovered deferred income taxes........................... 39,353 37,717
Other....................................................... 34,727 27,037
-------- --------
Total deferred charges and other assets....................... 80,077 70,844
-------- --------
Total assets.................................................. $398,182 $370,088
======== ========
See Notes to Consolidated Financial Statements.
</TABLE>
<TABLE>
<CAPTION>
CONNECTICUT ENERGY CORPORATION
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share)
<S> <C> <C>
June 30, Sept. 30,
1996 1995
--------- ---------
(Unaudited)
Capitalization and Liabilities
------------------------------
Common Shareholders' Equity:
Common Stock: authorized--20,000,000 shares, par value $1
per share, issued and outstanding--8,976,008 shares;
8,865,210 shares......................................... $ 8,976 $ 8,865
Capital in excess of par value............................. 90,392 88,295
Retained earnings.......................................... 44,649 34,401
-------- --------
Total common shareholders' equity............................ 144,017 131,561
-------- --------
Long-term debt............................................... 119,182 119,322
-------- -------
Total capitalization......................................... 263,199 250,883
-------- --------
Current Liabilities:
Short-term borrowings...................................... 19,700 24,200
Current maturities of long-term debt....................... 594 594
Accounts payable........................................... 12,629 9,586
Refunds due customers...................................... 185 862
Federal, state and deferred income taxes................... 10,071 2,525
Property and other accrued taxes........................... 6,312 4,877
Interest payable........................................... 2,229 3,311
Customers' deposits........................................ 1,900 1,843
Refundable purchased gas costs............................. 11,148 ---
Other accrued liabilities.................................. 3,427 3,419
-------- --------
Total current liabilities.................................... 68,195 51,217
-------- --------
Deferred Credits:
Deferred income taxes and investment tax credits........... 62,711 59,920
Other...................................................... 4,077 8,068
-------- --------
Total deferred credits....................................... 66,788 67,988
-------- --------
Total capitalization and liabilities......................... $398,182 $370,088
======== ========
See Notes to Consolidated Financial Statements.
</TABLE>
<TABLE>
<CAPTION>
CONNECTICUT ENERGY CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)
<S> <C> <C>
Nine Months Ended
June 30,
----------------------
1996 1995
---- ----
Net cash provided by operating activities.............................. $28,847 $37,091
------- -------
Cash Flows from Investing Activities:
Capital expenditures................................................. (15,931) (21,234)
Contributions in aid of construction................................. 45 20
Payments for retirement of utility plant............................. (26) (262)
Investments in energy ventures....................................... (1,966) (50)
------- -------
Net cash used by investing activities.................................. (17,878) (21,526)
------- -------
Cash Flows from Financing Activities:
Dividends paid on common stock....................................... (8,732) (8,541)
Issuance of common stock............................................. 2,208 2,485
Repayments of long-term debt......................................... (140) (141)
Decrease in short-term borrowings.................................... (4,500) (7,000)
------- -------
Net cash used by financing activities.................................. (11,164) (13,197)
------- -------
Net (decrease) increase in cash and cash equivalents................... (195) 2,368
Cash and cash equivalents at beginning of period....................... 4,635 1,637
------- -------
Cash and cash equivalents at end of period............................. $ 4,440 $ 4,005
======= =======
Supplemental Disclosures of Cash Flow Information
Cash paid during the period for:
Interest............................................................. $10,402 $ 9,815
Income taxes......................................................... $ 4,325 $ 6,635
See Notes to Consolidated Financial Statements.
</TABLE>
CONNECTICUT ENERGY CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. The unaudited consolidated financial statements presented
herein should be read in conjunction with the consolidated
financial statements of Connecticut Energy Corporation
("Connecticut Energy" or "Company") for the fiscal year ended
September 30, 1995 as presented in the Annual Report on Form 10-K.
In the opinion of management, the accompanying financial
information reflects all adjustments which are necessary to provide
a fair presentation of the interim periods shown. All such
adjustments are of a normal recurring nature.
In preparing the financial statements in conformity with
generally accepted accounting principles, management uses
estimates. The Company discloses estimates in the financial
statements where there is a reasonable possibility for change in
the near term. For this purpose, near term is defined as a period
of time not to exceed one year from the date of the financial
statements.
The Company's financial statements have been prepared
based on management's estimates of the impact of regulatory,
legislative and judicial developments on the Company or significant
groups of customers. The recorded amounts of certain accruals,
reserves, deferred charges and assets could be materially impacted
if circumstances change which affect these estimates.
2. The Company's principal subsidiary, The Southern
Connecticut Gas Company ("Southern"), prepares its financial
statements in accordance with the provisions of Statement of
Financial Accounting Standards No. 71, "Accounting for the Effects
of Certain Types of Regulation" ("SFAS 71"), which requires a cost-
based, rate-regulated enterprise such as Southern to reflect the
impact of regulatory decisions in its financial statements. The
Connecticut Department of Public Utility Control's ("DPUC") actions
through the ratemaking process can create regulatory assets in
which costs are allowed for ratemaking purposes in a period other
than the period in which the costs would be charged to expense if
the reporting entity were unregulated.
In its application of SFAS 71, Southern's accounting
policies reflect the impact of the rate treatment of certain events
or transactions which differ from generally accepted accounting
principles. The most significant of these policies include the
recording of deferred gas costs, pipeline transition costs,
environmental evaluation costs, hardship heating customer accounts
receivable and an unfunded deferred income tax liability, with a
corresponding unrecovered asset, for temporary differences
previously flowed through to ratepayers.
Based on current regulations and recent DPUC decisions,
the Company believes that its use of regulatory accounting for
Southern is appropriate and in accordance with the provisions of
SFAS 71.
3. Due to the seasonal nature of gas sales for space heating
purposes by Southern, the results of operations for the nine months
ended June 30, 1996 are not indicative of the results to be
expected for the fiscal year ending September 30, 1996.
4. Included in other deferred charges are amounts related to
the deferral of certain hardship heating customer accounts
receivable arrearages of $11,733,000 and $10,223,000 at June 30,
1996 and September 30, 1995, respectively; the deferral of certain
shortfalls in energy assistance funding related to the 1991/92 and
1992/93 heating seasons totalling $1,575,000 and $2,122,000 at June
30, 1996 and September 30, 1995, respectively; prepaid pension and
postretirement medical contributions totalling $11,061,000 and
$7,969,000 at June 30, 1996 and September 30, 1995, respectively,
and the deferral of certain conservation expenditures of $3,284,000
and $1,840,000 at June 30, 1996 and September 30, 1995,
respectively. These deferred charges are among other miscellaneous
deferred charges which Southern has been allowed to recover in
rates over periods ranging from three to five years in accordance
with the DPUC's Decision in Southern's last rate case.
5. Included in other deferred credits are amounts related to
various nonqualified benefit arrangements totalling $2,356,000 and
$2,190,000 at June 30, 1996 and September 30, 1995, respectively.
Also included are amounts related to Southern's interruptible
margin sharing mechanisms totalling $697,000 and $4,851,000 at June
30, 1996 and September 30, 1995, respectively.
6. Southern has identified coal tar residue at three sites
in Connecticut resulting from coal gasification operations
conducted at those sites by Southern's predecessors from the late
1800s through the first part of this century. Many gas
distribution companies throughout the country carried on such gas
manufacturing operations during the same period. See section in
Management's Discussion and Analysis entitled "Environmental
Matters" for further detail.
ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
Net Income
- ----------
Connecticut Energy Corporation's ("Connecticut Energy" or
"Company") consolidated net income for the three and nine months
ended June 30, 1996 and 1995 is detailed below:
Three Months Ended Nine Months Ended
June 30, June 30,
------------------ -----------------
(in thousands, except 1996 1995 1996 1995
per share) ---- ---- ---- ----
Net (Loss) Income $ (684) $(1,985) $18,980 $18,671
====== ======= ======= =======
Net (Loss) Income Per Share $(0.08) $ (0.23) $ 2.13 $ 2.13
====== ======= ======= =======
Weighted Average
Shares Outstanding 8,942 8,797 8,906 8,754
------ ------- ------- -------
Factors affecting the lower net loss for the three months ended
June 30, 1996 were increased interruptible margins retained by the
Company's principal subsidiary, The Southern Connecticut Gas Company
("Southern"), combined with increased firm margins related to higher
usage per customer, customer growth and conversions of non-heating
customers to heating customers. Increased margins were partially
offset by higher costs for depreciation; federal, state and other
taxes and short-term interest. Operations and maintenance expenses
were slightly lower than the comparative 1995 period.
Net income for the nine months ended June 30, 1996 was also
positively impacted by increased firm margins. Lower operations
expense was offset by higher expenses for maintenance; depreciation;
federal, state and other taxes and short-term interest.
Total Sales and Transportation Volumes
- --------------------------------------
Southern's total volumes of gas sold and transported for the
three and nine months ended June 30, 1996 were 7,262 and 31,452
MMcf, respectively, representing decreases of approximately 31% and
22% compared to corresponding 1995 periods. These decreases were
primarily attributable to lower interruptible sales and
transportation volumes due to the colder weather and the competitive
price of certain alternate fuels. Partially offsetting these
decreases were increases in firm sales volumes.
Firm Sales and Transportation Volumes
- -------------------------------------
Firm sales volumes for the three and nine months ended June 30,
1996 increased approximately 6% and 14%, respectively, compared to
the corresponding 1995 periods due to weather which was
approximately 8% and 17% colder, respectively, than the three and
nine months ended June 30, 1995; higher usage per customer; growth
in Southern's customer base and the conversions of non-heating
customers to heating customers. Additionally, service under
Southern's firm transportation tariffs commenced during the three
months ended June 30, 1996.
Interruptible Sales and Transportation Volumes
- ----------------------------------------------
Margins earned on volumes delivered to interruptible customers
vary depending upon the relationship of the market price for
alternate fuels to the price of natural gas and related
transportation. Additionally, margins earned, net of gross earnings
tax, from on-system interruptible service in excess of an annual
target are allocated between firm customers and Southern through a
margin sharing mechanism. Beginning June 1, 1996, excess margins
earned that would have been returned to firm customers have been
redirected, with Connecticut Department of Public Utility Control
("DPUC") approval, to fund certain economic development and hardship
assistance programs.
The chart below depicts on-system interruptible sales and
transportation volumes, off-system sales volumes and off-system
transportation volumes under a special contract with The Connecticut
Light and Power Company for its Devon generating station ("Devon
Station") as well as gross margins earned and retained through the
operation of the margin sharing mechanism:
Three Months Ended Nine Months Ended
June 30, June 30,
------------------ -----------------
(dollars in thousands) 1996 1995 1996 1995
---- ---- ---- ----
Gross Margin Earned $3,327 $3,267 $ 9,223 $10,333
====== ====== ======= =======
Gross Margin Retained $2,702 $1,629 $ 6,513 $ 6,448
====== ====== ======= =======
Volumes Sold and
Transported (MMcf) 3,866 7,502 10,351 22,048
------ ------ ------- -------
Margins retained by Southern were higher for the three and nine
months ended June 30, 1996 compared to the corresponding 1995
periods principally due to reaching the annual margin target from
on-system interruptible service later in fiscal 1996 than in fiscal
1995. In fiscal 1995, due to warmer weather, Southern increased
deliveries to interruptible customers, thereby attaining the target
margin earlier.
Volumes for the three and nine months ended June 30, 1996 were
lower compared to the corresponding 1995 periods due to colder
weather. Volumes for the nine months ended June 30, 1996 were
additionally impacted by the absence of off-system transportation
deliveries to the Devon Station from January through April.
Gross Margin
- ------------
The Company's gross margin for the three and nine months ended
June 30, 1996 was approximately 11% and 2% higher, respectively,
compared to the corresponding 1995 periods.
Southern's firm rates include a Weather Normalization
Adjustment clause ("WNA") which allows Southern to charge or credit
the non-gas portion of its firm rates to reflect deviations from
normal weather. Because weather during the three and nine months
ended June 30, 1996, was colder than normal, the operation of the
WNA returned approximately $192,000 and $2,709,000, respectively, to
firm customers. This compares to collections from firm customers
during the three and nine months ended June 30, 1995 of
approximately $319,000 and $6,869,000, respectively.
Southern's firm rates are also affected by a Purchased Gas
Adjustment clause ("PGA") which allows Southern to pass through to
its customers, through periodic adjustments to amounts billed,
increases or decreases in costs incurred for purchased gas as
compared to purchased gas costs embedded in base rates without
affecting gross margin. For the three and nine months ended June
30, 1996, the operation of Southern's PGA increased revenues and gas
costs by approximately $593,000 and $6,628,000, respectively,
compared to the corresponding 1995 periods when revenues and gas
costs decreased by approximately $973,000 and $3,576,000,
respectively.
Operations Expense
- ------------------
Operations expense for the nine months ended June 30, 1996
decreased approximately 3% compared to the corresponding 1995 period
due to lower labor costs, resulting from reduced overtime payments
and a smaller work force; increased rates for service on customers'
premises; lower pension and postretirement health care costs and
lower group insurance premiums. Partially offsetting these positive
effects on operations expense were increases related to regulatory
commission expense and group insurance claims.
Depreciation
- ------------
Depreciation expense for the three and nine months ended June
30, 1996 increased approximately 2% and 6%, respectively, compared
to the corresponding 1995 periods primarily due to additions to
plant in service by Southern.
Federal and State Income Taxes
- ------------------------------
The total provision for federal and state income taxes for the
three and nine months ended June 30, 1996 increased approximately
28% and 10%, respectively, compared to the corresponding 1995
periods. Factors causing the increase for the three months ended
June 30, 1996 were a lower pre-tax loss and lower projected amounts
of tax-deductible employee benefit plan contributions. The higher
effective tax rate for the nine months ended June 30, 1996 was
predominantly due to higher pre-tax income.
Municipal, Gross Earnings and Other Taxes
- -----------------------------------------
Municipal, gross earnings and other taxes increased
approximately 6% for the three months ended June 30, 1996 compared
to the corresponding 1995 period primarily due to a higher provision
for property taxes.
Municipal, gross earnings and other taxes increased
approximately 8% for the nine months ended June 30, 1996 compared to
the corresponding 1995 period primarily due to a higher provision
for property taxes, higher gross earnings taxes due to higher
revenues and higher sales and use taxes.
Interest Expense
- ----------------
Total interest expense increased approximately 2% and 5% for
the three and nine months ended June 30, 1996, respectively,
compared to the corresponding 1995 periods primarily because of
higher average short-term borrowings and higher interest expense on
deferred gas costs. Total interest expense for the nine months
ended June 30, 1996 was additionally impacted by higher interest
expense on amounts associated with the margin sharing mechanism.
LIQUIDITY AND CAPITAL RESOURCES
Operating Activities
- --------------------
The seasonal nature of Southern's business creates large short-
term cash demands primarily to finance gas purchases, customer
accounts receivable and certain tax payments. To provide these
funds, as well as funds for its capital expenditure program and
other corporate purposes, Connecticut Energy and its affiliates have
committed lines of credit with a number of banks totalling
$37,000,000. Of this total, Southern has committed lines of credit
of $32,000,000. Additionally, uncommitted lines of credit exist
with two banks totalling $18,000,000; and Southern has a revolving
credit line agreement for up to $20,000,000 with one of its banks,
which has a revolving credit feature through December 21, 1996,
followed by a term loan period through December 21, 2000. Because
of the availability of short-term credit and the ability to issue
long-term debt and additional equity, management believes it has
adequate financial flexibility to meet its anticipated cash needs.
Operating cash flows for the nine months ended June 30, 1996
compared to the corresponding 1995 period were negatively affected
by higher accounts receivable, higher balances of certain deferred
charges and higher amounts returned to firm customers through
Southern's margin sharing mechanism. These negative effects were
partially offset by higher accounts payable and refundable purchased
gas cost balances and higher accrued taxes.
Investing Activities
- --------------------
Capital expenditures approximated $15,886,000 and $21,214,000
for the nine months ended June 30, 1996 and 1995, respectively.
Capital expenditures for the nine months ended June 30, 1996 were
approximately 25% lower than in the 1995 period due to the impact of
more severe winter weather. On an annual basis, Southern relies
upon cash flows from operating activities to fund a portion of these
expenditures, with the remainder funded by short-term borrowings
and, at some later date, long-term debt and capital stock
financings.
Financing Activities
- --------------------
On May 28, 1996, the Board of Directors of the Company
increased the quarterly dividend on the Company's common stock to
$0.33 per share, or an indicated annual dividend rate of $1.32 per
share.
Southern's financing plan for fiscal 1996 includes a Medium-
Term Notes ("MTN") program, which has been approved by the DPUC.
This program permits the issuance from time to time of up to
$75,000,000 of secured MTNs over a four-year period in varying
amounts and with varying terms. Proceeds from the sale of the MTNs
will be used to reduce short-term borrowings incurred primarily in
connection with Southern's capital expenditure program and for other
general corporate purposes. On August 1, 1996, Southern made its
first issuance under the program of $20,000,000 in MTNs at a
weighted average rate of 7.84%. The method, timing and amounts of
any future financings by the Company or Southern will depend on a
variety of factors, including capitalization ratios, coverage
ratios, interest costs, the state of the capital markets and general
economic conditions.
Environmental Matters
- ---------------------
Southern has identified coal tar residue at three sites in
Connecticut resulting from coal gasification operations conducted at
those sites by Southern's predecessors from the late 1800s through
the first part of this century. Many gas distribution companies
throughout the country carried on such gas manufacturing operations
during the same period. The coal tar residue is not designated a
hazardous material by any federal or Connecticut agency, but some of
its constituents are classified as hazardous.
On April 27, 1992, Southern notified the Connecticut Department
of Environmental Protection ("DEP") and the United States
Environmental Protection Agency of the presence of coal tar residue
at the sites. On November 9, 1994, the DEP informed Southern that
it had performed a preliminary review of the information provided to
it by Southern and had determined that, based on current priorities
and limited staff resources, a comprehensive review of site
conditions and subsequent participation by the DEP "are not possible
at this time." Until the DEP conducts a comprehensive review, no
discussions with it addressing the extent, timing and type of
remedial action, if any, can occur.
Given the DEP's response, management cannot at this time
predict the costs of any future site analysis and remediation, if
any, nor can it estimate when any such costs, if any, would be
incurred. While such future analytical and cleanup costs could
possibly be significant, management believes, based upon the
provisions of the Partial Settlement in Southern's latest rate
order, that Southern will be able to recover these costs through its
customer rates. Although the method, timing and extent of any
recovery remain uncertain, management currently does not expect that
the incurrence of such costs will materially adversely impact the
Company's financial condition or results of operations.
Other
- -----
One of the Company's nonutility subsidiaries, CNE Energy
Services Group, Inc., through Total/Louis Dreyfus Energy Services,
L.L.C., a joint venture with Louis Dreyfus Energy Corp., has formed
alliances with Valley Resources, Inc. and ENI Resources, Inc., a
subsidiary of EnergyNorth, Inc., to sell natural gas, fuel oil,
wholesale propane and other energy services to customers in Rhode
Island and Massachusetts and in New Hampshire and Maine,
respectively.
PART II- OTHER INFORMATION
Items 1, 2, 3, 4 and 5 are inapplicable.
Item 6. Exhibits and Reports on Form 8-K
--------------------------------
(a) Exhibits:
Exhibit 27-Financial Data Schedule
Submitted only in electronic format to the
Securities and Exchange Commission.
(b) Reports on Form 8-K:
There were no reports filed on Form 8-K during
the quarter.
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.
CONNECTICUT ENERGY CORPORATION
(Registrant)
DATE: August 8, 1996 /s/ Vincent L. Ammann, Jr.
-------------- ---------------------------
Vincent L. Ammann, Jr.
Vice President and
Chief Accounting Officer
<TABLE> <S> <C>
<ARTICLE> UT
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-END> JUN-30-1996
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 251,781
<OTHER-PROPERTY-AND-INVEST> 2,792
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<COMMON> 8,976
<CAPITAL-SURPLUS-PAID-IN> 90,392
<RETAINED-EARNINGS> 44,649
<TOTAL-COMMON-STOCKHOLDERS-EQ> 144,017
0
0
<LONG-TERM-DEBT-NET> 119,182
<SHORT-TERM-NOTES> 19,700
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0
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<GROSS-OPERATING-REVENUE> 233,918
<INCOME-TAX-EXPENSE> 11,811
<OTHER-OPERATING-EXPENSES> 193,015
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<EARNINGS-AVAILABLE-FOR-COMM> 18,980
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</TABLE>
