<PAGE>
File Nos. 70-5543/70-6958
70-7055/70-6513
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report
Pursuant to Rule 24 under the
Public Utility Holding Company Act of 1935
NEW ENGLAND ELECTRIC SYSTEM (NEES)
NEW ENGLAND ENERGY INCORPORATED (NEEI)
In accordance with the Orders of the Securities and Exchange Commission
dated July 19, 1978, October 22, 1985, October 3, 1991 and December 8, 1987,
following is a report for the fourth quarter of 1994:
For the purpose of this report and following the Commission's Order dated
October 22, 1985 (Release No. 23873), references herein to "Old Program"
relate to that portion of the NEEI oil and gas exploration and development
program which consists of prospects entered into through December 31, 1983.
Likewise, references to "New Program" relate to prospects entered into since
December 31, 1983. In 1991, NEEI sold substantially all of the properties in
the New Program. No new prospects have been acquired since December 31, 1986.
a. Investment in partnerships by prospect: See Exhibit a.
b. Summary statement of proved and probable reserves:
Old Program
-----------
Natural Gas
Oil and ----------- Total
Condensate Equivalent Equivalent
Bbl. MCF Bbl. Bbl.
---------- ---------- ---------- ----------
Balance 10/1/94 1,084,018 70,950,535 11,825,089 12,909,107
Additions & Revisions
through 12/31/94 38,431 4,800,147 800,025 838,456
--------- ----------- ---------- ----------
Balance 1,122,449 75,750,682 12,625,114 13,747,563
Production 4th Qtr. (74,699) (3,257,438) (542,906) (617,605)
--------- ----------- ---------- ----------
Balance 12/31/94 1,047,750 72,493,244 12,082,208 13,129,958
--------- ----------- ---------- ----------
New Program
-----------
None.
<PAGE>
-2-
c. Production and revenue by prospect: See Exhibit c.
d. Description of Operations:
NEEI has participated through its partnership with Samedan Oil
Corporation (Samedan) in drilling operations with the results as
summarized below. Also shown are activities on properties acquired
from a former partner, Dorchester Exploration, Inc. (Dorchester),
prior to termination of that partnership. NEEI sold its remaining
interests in "Dorchester" properties as of June 1, 1988.
Old Program
-----------
Since
Quarter Inception
------- ---------
No. of dry holes
Samedan 0 732
Dorchester 0 51
-- -----
0 783
-- -----
No. of productive wells
Samedan 1 1,165*
Dorchester 0 69*
-- ------
1 1,234*
-- ------
No. of wells drilled 1 2,017
(both exploration and development) -- -----
* Includes depleted/sold wells as follows:
Samedan 3 468
Dorchester 0 69
-- -----
3 537
-- -----
New Program
-----------
None.
INVESTMENT
----------
Budget Authorized
Actual By SEC
------------------------------------ -----------------
Since
Quarter Year 1/1/94 1994
---------- ---------- ---------- -----------------
Samedan $2,198,043 $13,190,584 $13,190,584 (A) $15,000,000 (B)
(A) Does not include Management Fee of $1,928,643 for 1994.
(B) Authorized through December 31, 1994, by Order dated August 24,
1993 (Release No. 35-26110).
<PAGE>
-3-
e. Fuel Production, Sales and Other Income:
Old Program:
1. Sales to affiliates:
There have been no direct sales of NEEI oil and gas production
to affiliates.
<TABLE>
<CAPTION>
Quarter Year Inception
Ended Ended Thru
12/31/94 12/31/94 12/31/94
-------- -------- ---------
<S> <C> <C> <C>
2. Sales to nonaffiliates
(Exhibit c.):
Equivalent barrels of fuel
produced 617,605 3,361,565 45,302,973
Average price per barrel $ 10.09 $ 11.94 $ 14.33
----------- ----------- ------------
Sales revenues $ 6,231,824 $40,152,219 $649,421,206
3. Loss to NEP 4,591,037 39,793,816 285,100,256
4. Flow through of excess deferred 818,722 5,428,722 77,303,011
taxes
5. Investment tax credit - - 13,817,248
6. Depletion - - 6,740,318
7. Deferred tax related to reserve - - 9,080,000
addition
8. Transfer of reserve (net) from - - 6,400,000
NEES
----------- ----------- --------------
Total $11,641,583 $85,374,757 $1,047,862,039
----------- ----------- --------------
New Program: None.
f. Credits applied to
New England Power Company (NEP):
1. Disposition of proceeds:
Amortization of cost of
fuel reserves $12,197,149 $79,232,090 $964,068,900
Production costs 1,031,192 4,697,425 72,857,649
State taxes (1,586,758) 1,445,242 5,457,742
Savings to NEP - - 8,701,242
Royalty to NEP - - 1,099,807
Other - - 65,472
----------- ----------- --------------
Total $11,641,583 $85,374,757 $1,052,250,812
----------- ----------- --------------
Net income/(loss)/retained $ - - $ (4,388,773)
deficit ----------- ----------- ------------
</TABLE>
<PAGE>
-4-
f. continued
<TABLE>
<CAPTION>
Quarter Year Inception
Ended Ended Thru
12/31/94 12/31/94 12/31/94
-------- -------- ---------
<S> <C> <C> <C>
2. Royalties prepaid to NEP:
Beginning balance in account $ 342,312 $ 342,312 $ -
------------ ------------ ------------
Royalties/savings earned - (9,801,049)
Royalties passed on to NEP - 10,143,361**
------------ ------------ ------------
Ending balance in account $ 342,312 $ 342,312 $ 342,312
------------ ------------ ------------
3. Losses to be passed on to NEP:
Beginning balance in account $ 48,708,962 $ 46,354,838 $ -
------------ ------------ ------------
Losses accrued 4,591,037 39,793,816 285,100,256
Losses passed on to NEP** (13,506,183) (46,354,838) (245,306,440)
------------ ------------ ------------
Ending balance in account $ 39,793,816 $ 39,793,816 $ 39,793,816
------------ ------------ ------------
* Includes $8,701,242 savings passed on to NEP for sales prior to 1/1/84
pursuant to Commission Order File No. 70-5543.
** Consistent with pricing policy approved in Release No. 23873, current
year losses cannot be recovered until the following year.
</TABLE>
<PAGE>
-5-
g. Investment by NEES compared with Commission Authorization:
<TABLE>
<CAPTION>
Release No./Date
--------------------------------------
25129 24847 24847
----- ----- -----
8/8/90 3/29/89 3/29/89
------ ------- -------
<S> <C> <C> <C>
Maximum NEES Investment authorized: $45,000,000(1)$75,000,000 $400,000,000
----------- ----------- ------------
1. Investments by NEES-inception through
September 30, 1994 (net)
Subordinated notes 2,130,739 15,597,691 -
Common stock and premium 250,000 - -
----------- ----------- ------------
Total investment by NEES 2,380,739 15,597,691 -
Investment by NEES-during the
quarter (net)
Subordinated notes 570,141 - -
Total investment by NEES through
December 31, 1994 (net)
Subordinated notes 2,700,880 15,597,691 -
Common stock and premium 250,000 - -
----------- ----------- -----------
$ 2,930,880 $15,597,691 $ -
----------- ----------- -----------
2. Increase or Reduction in Investment
by NEES:
Date Amount Date Amount Date Amount
---- ------ ---- ------ ---- ------
Issues of subordinated notes
to NEES during quarter 10/20/94$ 14,820 $ - $ -
ended December 31, 1994 12/6/94 555,321
Payments of
subordinated notes to NEES
during quarter ended
December 31, 1994
------------ ------- -------
Net change in investment $ 570,141 $ - $ -
------------ ------- -------
_______________
(1) Plus any after-tax net loss attributable to the expensing of interest
on up to $37,200,000 of borrowings in connection with the Old Program.
</TABLE>
<PAGE>
-6-
h. Financial Statements:
Exhibit h-1 Balance Sheet of NEEI at December 31, 1994, (unaudited,
subject to adjustment)
Exhibit h-2 Statements of Income and Retained Deficit of NEEI for the
periods ended December 31, 1994 (unaudited, subject to adjustment)
Exhibit h-3 Statements of Cash Flows of NEEI for the periods ended
December 31, 1994 (unaudited, subject to adjustment)
Exhibit h-4 Computation of Bank Interest for the quarter ended
December 31, 1994
i. Fuel purchased during quarter for NEP:
(Summary: See Exhibit i for detail.)
1. From proceeds from sale of NEEI Old Program production
Date purchased (delivered) 4th Quarter
Quantity of fuel (equiv. bbl) 1,095,603.06
Average net price (per equiv. bbl) $ 7.28
-------------
Cost to NEEI $ 7,986,477
Loss from NEEI fuel
exploration activities 13,506,183
-------------
Cost to NEP 21,492,660
Adjustments, inspection charges, etc. 1,813
-------------
Total Cost to NEP $21,494,473
2. For fuel procurement and inventory activities
Date purchased (delivered) 4th Quarter
Quantity of fuel (equiv. bbl) 72,319.33
Average net price (per equiv. bbl) $ 19.87
-------------
Cost to NEEI and NEP $ 1,437,343
Adjustments, inspection charges, etc. -
-------------
Total Cost to NEEI and NEP 1,437,343
-----------
Total $22,931,816
===========
k. Use of Proceeds from Sales of NEEI New Program Production:
None.
<PAGE>
-7-
Sale of NEEI Wells
------------------
Old Program
- -----------
During the period from October 1, 1994 through December 31, 1994, NEEI
disposed of its interest in Existing (Old) Program wells containing proved or
probable reserves as follows:
Est. Net Reserves
Effective (Eq. Bbls) as
Date of of Date of
Prospect Location Disposition Disposition
-------- -------- ----------- ------------------
Buckhorn Sweetwater County, WY
Federal #1-6 4/1/94* 0
RIR Cambell County, WY
Annie Hines 1+2 6/1/94* 955
N. Oswalt Carter County, OK
Patron Well 1-36 6/1/94* 1,737
S. Brock Carter County, OK
Taylor Trust #1 6/1/94* 3,501
Banner Carter County, OK
Henry JO Well #3-7 10/1/94 542
Lost Bridge Dunn County, CO
Pelton (11) Well #1 10/1/94 118
------
6,853
======
* Reported by Samedan in the fourth quarter of 1994.
The order of the Securities and Exchange Commission dated October 22,
1985 (Release No. 23873) requires NEEI to include the reserves associated with
the above wells as production upon which royalties would be payable to NEP,
but authorizes NEEI to defer such inclusion to coincide with the estimated
production cycle for each well. However, in light of the particularly small
quantities of reserves represented in the table above, NEEI will include the
total 6,853 barrels of remaining reserves in the calculation of the royalty of
1994. Due to operating losses, no royalty has been paid since 1985.
Losses Passed to NEP
--------------------
Through December 31, 1985, NEEI's Old Program generated customer savings.
Due to precipitous declines in oil and gas market prices, the Old Program
generated operating losses for the first time during 1986. As a result of the
losses during 1986, the crossover reserve, which was $24.1 MM at December 31,
1985, was exhausted. NEEI passed its 1986 losses in excess of the reserve,
$277,732, on to NEP in 1987. NEEI's Old Program incurred losses in 1987
through 1992 totalling $198,673,870 which were passed on to NEP in 1988
through 1993.
<PAGE>
-8-
SIGNATURES
Pursuant to the requirements of the Public Utility Holding Company Act of
1935, each undersigned company has duly caused this report (Commission's File
Nos. 70-5543, 70-6513, 70-6958, and 70-7055) to be signed on its behalf, as
indicated, by the undersigned officer thereunto duly authorized by each such
company.
NEW ENGLAND ELECTRIC SYSTEM
s/Michael E. Jesanis
Michael E. Jesanis, Treasurer
NEW ENGLAND ENERGY INCORPORATED
s/John G. Cochrane
John G. Cochrane, Treasurer
Date: February 14, 1995
The name "New England Electric System" means the trustee or trustees for the
time being (as trustee or trustees but not personally) under an agreement and
declaration of trust dated January 2, 1926, as amended, which is hereby
referred to, and a copy of which as amended has been filed with the Secretary
of the Commonwealth of Massachusetts. Any agreement, obligation or liability
made, entered into or incurred by or on behalf of New England Electric System
binds only its trust estate, and no shareholder, director, trustee, officer or
agent thereof assumes or shall be held to any liability therefor.
<PAGE>
EXHIBIT INDEX
Exhibit No. Description Page
- ----------- ----------- ----
a Investment in partnerships by prospect Filed under
(Old Program) cover of
Form SE
c Production and net revenue (Old Program) Filed under
cover of
Form SE
h-1 Balance Sheet at December 31, 1994 Filed herewith
(Unaudited, Subject to Adjustment)
h-2 Statements of Income and Retained Filed herewith
Deficit for the Periods Ended
December 31, 1994 (Unaudited,
Subject to Adjustment)
h-3 Statements of Cash Flows for the Periods Filed herewith
Ended December 31, 1994 (Unaudited,
Subject to Adjustment)
h-4 Computation of Bank Interest for the Filed herewith
Quarter Ended December 31, 1994
i Fuel Purchased for NEP for the Quarter Filed herewith
Ended December 31, 1994
<PAGE>
<TABLE>
Exhibit h-1
NEW ENGLAND ENERGY INCORPORATED
Balance Sheet
December 31, 1994
(Unaudited, Subject to Adjustment)
<CAPTION>
ASSETS
- ------
Old Program New Program Combined
----------- ----------- --------
<S> <C> <C> <C>
Current assets:
Cash, including temporary cash investments
of $1,350,000 with affiliated companies$ 1,351,478$ 54,514 $ 1,405,992
Accounts receivable:
Affiliated companies:
- accrued loss to be passed
on to affiliate 39,793,816 - 39,793,816
- from sales of oil 7,825 - 7,825
- tax benefits 1,168,482 (20,900) 1,147,582
- other 24,908 260 25,168
Prepaid expenses 342,312 - 342,312
-------------------------- --------------
Total current assets 42,688,821 33,874 42,722,695
-------------------------- --------------
Property at cost:
Cost of fuel reserves:
Exploration and development costs:
Samedan 740,287,061 - 740,287,061
Dorchester 67,401,440 - 67,401,440
Cost of capital 434,238,263 - 434,238,263
Other 31,560,150 - 31,560,150
-------------------------- --------------
1,273,486,914 - 1,273,486,914
Less-accumulated amortization (964,068,900) - (964,068,900)
-------------------------- --------------
Net cost of fuel reserves 309,418,014 - 309,418,014
Work in process - Samedan 1,136,423 - 1,136,423
-------------------------- --------------
Total property 310,554,437 - 310,554,437
-------------------------- --------------
$ 353,243,258$ 33,874 $ 353,277,132
========================== ==============
LIABILITIES AND PARENT COMPANY'S INVESTMENT
- -------------------------------------------
Current liabilities:
Accrued exploration and development costs $ 26,281,343$ - $ 26,281,343*
Accounts payable 2,111,995 349,814 2,461,809
Accrued interest 790,771 - 790,771
-------------------------- --------------
Total current liabilities 29,184,109 349,814 29,533,923
-------------------------- --------------
Deferred income taxes 103,585,917 (50,900) 103,535,017
-------------------------- --------------
Deferred credit 7,379,100 - 7,379,100
-------------------------- --------------
Notes payable to banks under credit agreement 216,000,000 - 216,000,000
-------------------------- --------------
Parent company's investment:
Subordinated notes payable to parent 2,700,880 15,597,691 18,298,571
Common stock, par value $1 per share 2,500 - 2,500
Paid-in capital 247,500 - 247,500
Retained deficit (5,856,748)(15,862,731) (21,719,479)
-------------------------- --------------
Total parent company's investment (2,905,868) (265,040) (3,170,908)
-------------------------- --------------
$ 353,243,258$ 33,874 $ 353,277,132
========================== ==============
*Accrued exploration and development costs:
Total
(All Samedan)
-------------
Exploration $10,386,513
Development 16,558,794
Work in process 239,204
Advance (903,168)
-----------
$26,281,343
===========
</TABLE>
<PAGE>
<TABLE>
Exhibit h-2
Page 1 of 2
NEW ENGLAND ENERGY INCORPORATED
Statements of Income and Retained Deficit
For the Quarter Ended December 31, 1994
(Unaudited, Subject to Adjustment)
<CAPTION>
Old Program New Program Combined
----------- ----------- --------
<S> <C> <C> <C>
Operating revenue:
Sales of fuel to an affiliate $ 22,931,816 $ - $ 22,931,816
Loss passed on to an affiliate (13,506,183) - (13,506,183)
Accrued loss to be passed on to an affiliate 4,591,037 - 4,591,037
Sales to nonaffiliates:
Oil 1,179,460 593 1,180,053
Gas 5,052,364 1,939 5,054,303
------------ ------------ ------------
Total operating revenue 20,248,494 2,532 20,251,026
------------ ------------ ------------
Operating expenses:
Purchases of fuel for an affiliate 9,425,633 - 9,425,633
Amortization of cost of fuel reserves 12,197,149 - 12,197,149
Production costs 1,031,192 1,463 1,032,655
General and administrative expense - - -
------------ ------------ ------------
Total operating expenses 22,653,974 1,463 22,655,437
------------ ------------ ------------
Operating income/(loss) (2,405,480) 1,069 (2,404,411)
Other income/(expense):
Interest income - 689 689
Interest expense (574,810) (442) (575,252)
State taxes 1,641,400 (6,300) 1,635,100
------------ ------------ ------------
Operating and other income/(loss) (1,338,890) (4,984) (1,343,874)
------------ ------------ ------------
Federal income taxes:
Current federal income taxes 1,404,257 86,900 1,491,157
Deferred federal income taxes (2,405,200) (87,000) (2,492,200)
------------ ------------ ------------
Net federal income taxes (1,000,943) (100) (1,001,043)
------------ ------------ ------------
Net income (337,947) (4,884) (342,831)
Retained deficit at beginning of period (5,518,801) (15,857,847) (21,376,648)
------------ ------------ ------------
Retained deficit at end of period $ (5,856,748) $(15,862,731) $(21,719,479)
============ ============ ============
</TABLE>
<PAGE>
<TABLE>
Exhibit h-2
Page 2 of 2
NEW ENGLAND ENERGY INCORPORATED
Statements of Income and Retained Deficit
For the Year Ended December 31, 1994
(Unaudited, Subject to Adjustment)
<CAPTION>
Old Program New Program Combined
----------- ----------- --------
<S> <C> <C> <C>
Operating revenue:
Sales of fuel to an affiliate $ 90,411,206 $ - $ 90,411,206
Loss passed on to an affiliate (46,354,838) - (46,354,838)
Accrued loss to be passed on to an affiliate 39,793,816 - 39,793,816
Sales to nonaffiliates:
Oil 5,303,952 11,708 5,315,660
Gas 34,848,267 10,823 34,859,090
------------ ------------ ------------
Total operating revenue 124,002,403 22,531 124,024,934
------------ ------------ ------------
Operating expenses:
Purchases of fuel for an affiliate 44,056,368 - 44,056,368
Amortization of cost of fuel reserves 79,232,090 - 79,232,090
Production costs 4,697,425 11,501 4,708,926
General and administrative expense - 5,747 5,747
------------ ------------ ------------
Total operating expenses 127,985,883 17,248 128,003,131
------------ ------------ ------------
Operating income/(loss) (3,983,480) 5,283 (3,978,197)
Other income/(expense):
Interest income - 11,011 11,011
Interest expense (1,917,257) (40,262) (1,957,519)
State taxes (1,390,600) (59,758) (1,450,358)
------------ ------------ ------------
Operating and other income/(loss) (7,291,337) (83,726) (7,375,063)
------------ ------------ ------------
Federal income taxes:
Current federal income taxes 14,752,757 78,000 14,830,757
Deferred federal income taxes (20,833,600) (87,000) (20,920,600)
------------ ------------ ------------
Net federal income taxes (6,080,843) (9,000) (6,089,843)
------------ ------------ ------------
Net income (1,210,494) (74,726) (1,285,220)
Retained deficit at beginning of period (4,646,254) (15,788,005) (20,434,259)
------------ ------------ ------------
Retained deficit at end of period $ (5,856,748) $(15,862,731) $(21,719,479)
============ ============ ============
</TABLE>
<PAGE>
<TABLE>
Exhibit h-3
Page 1 of 2
NEW ENGLAND ENERGY INCORPORATED
Statements of Cash Flows
For the Quarter Ended December 31, 1994
(Unaudited, Subject to Adjustment)
<CAPTION>
Old Program New Program Combined
----------- ----------- --------
<S> <C> <C> <C>
Operating Activities:
Net income $ (337,947) $ (4,884) $ (342,831)
Adjustments to reconcile net income to
net cash provided by operating activities:
Amortization of cost of fuel reserves 12,197,149 - 12,197,149
Loss passed on to an affiliate 13,506,183 - 13,506,183
Accrued loss to be passed on to an affiliate (4,591,037) - (4,591,037)
Deferred income taxes (3,557,257) (87,000) (3,644,257)
(Increase)/decrease in accounts receivable
(excluding loss to be passed on to affiliate) 517,495 81,123 598,618
Increase/(decrease) in accrued exploration
and development costs (869,035) - (869,035)
Increase/(decrease) in accounts payable 127,498 13,154 140,652
Increase/(decrease) in accrued interest payable (356,660) - (356,660)
------------ --------- ------------
Net cash provided by operating activities $ 16,636,389 $ 2,393 $ 16,638,782
------------ --------- ------------
Investing Activities:
Investment in property - Samedan:
Exploration (also includes dry holes, depleted
wells and work in process) $ 274,668 $ - $ 274,668
Development (also reflects transfer of
depleted wells) (2,540,406) - (2,540,406)
Capital costs (2,709,795) - (2,709,795)
Other (935,786) - (935,786)
------------ --------- ------------
Net cash used in investing activities $ (5,911,319) $ - $ (5,911,319)
------------ --------- ------------
Financing Activities:
Subordinated notes payable to parent-issues $ 570,141 $ - $ 570,141
Subordinated notes payable to parent-retirements - - -
Changes in notes payable to bank under
credit agreement (14,000,000) - (14,000,000)
------------ --------- ------------
Net cash used in financing activities $(13,429,859) $ - $(13,429,859)
------------ --------- ------------
Net increase/(decrease) in cash and cash equivalents$ (2,704,789) $ 2,393 $ (2,702,396)
Cash and cash equivalents at beginning of period 4,056,267 52,121 4,108,388
------------ --------- ------------
Cash and cash equivalents at end of period $ 1,351,478 $ 54,514 $ 1,405,992
------------ --------- ------------
</TABLE>
<PAGE>
<TABLE>
Exhibit h-3
Page 2 of 2
NEW ENGLAND ENERGY INCORPORATED
Statements of Cash Flows
For the Year Ended December 31, 1994
(Unaudited, Subject to Adjustment)
<CAPTION>
Old Program New Program Combined
----------- ----------- --------
<S> <C> <C> <C>
Operating Activities:
Net income $ (1,210,494) $ (74,726) $ (1,285,220)
Adjustments to reconcile net income to
net cash provided by operating activities:
Amortization of cost of fuel reserves 79,232,090 - 79,232,090
Loss passed on to an affiliate 46,354,838 - 46,354,838
Accrued loss to be passed on to an affiliate (39,793,816) - (39,793,816)
Deferred income taxes (20,753,657) (87,000) (20,840,657)
(Increase)/decrease in accounts receivable
(excluding loss to be passed on to affiliate) (1,186,913) 22,537 (1,164,376)
Increase/(decrease) in accrued exploration
and development costs (3,268,377) - (3,268,377)
Increase/(decrease) in accounts payable 326,618 (3,929) 322,689
Increase/(decrease) in accrued interest payable 230,879 - 230,879
Increase/(decrease) in accrued taxes (3,826,715) 1,797,400 (2,029,315)
------------ --------- ------------
Net cash provided by operating activities $ 56,104,453 $1,654,282 $ 57,758,735
------------ --------- ------------
Investing Activities:
Investment in property - Samedan:
Exploration (also includes dry holes, depleted
wells and work in process) $ (269,140) $ - $ (269,140)
Development (also reflects transfer of
depleted wells) (10,588,992) - (10,588,992)
Capital costs (9,935,709) - (9,935,709)
Other (4,170,344) - (4,170,344)
------------ --------- ------------
Net cash used in investing activities $(24,964,185) $ - $(24,964,185)
------------ --------- ------------
Financing Activities:
Subordinated notes payable to parent-issues $ 1,890,815 - $ 1,890,815
Subordinated notes payable to parent-retirements (11,000,000) (2,300,000) (13,300,000)
Changes in notes payable to bank under
credit agreement (22,000,000) - (22,000,000)
------------ --------- ------------
Net cash used in financing activities $(31,109,185) (2,300,000) $(33,409,185)
------------ --------- ------------
Net increase/(decrease) in cash and cash equivalents$ 31,083 $(645,718) $ (614,635)
Cash and cash equivalents at beginning of period 1,320,395 700,232 2,020,627
------------ --------- ------------
Cash and cash equivalents at end of period $ 1,351,478 $ 54,514 $ 1,405,992
------------ --------- ------------
</TABLE>
<PAGE>
Exhibit h-4
NEW ENGLAND ENERGY INCORPORATED
Computation of Bank Interest
Quarter Ended December 31, 1994
--------------------------------
Cost of Notes Payable to Banks Under Credit Agreement
- -----------------------------------------------------
Date Paid
Date or Maturity Annual
Amount Issued Date Rate % Total
------ ------ ----------- ------ -----
Old Program
-----------
$ 60,000,000 07/22/94 10/24/94 5.3125 $ 203,645.83
20,000,000 08/23/94 11/23/94 5.2300 153,994.44
10,000,000 08/23/94 11/23/94 5.2000 76,555.54
15,000,000 08/30/94 10/31/94 5.5000 68,750.00
37,000,000 09/06/94 12/06/94 5.9375 402,760.42
17,000,000 09/12/94 10/12/94 5.5000 28,569.45
10,000,000 09/23/94 11/23/94 5.2500 77,291.66
20,000,000 09/23/94 11/23/94 5.4000 159,000.00
31,000,000 09/23/94 10/24/94 5.5625 110,168.41
10,000,000 09/26/94 10/26/94 5.6250 39,930.56
17,000,000 10/12/94 11/14/94 5.8125 90,578.12
89,000,000 10/24/94 12/28/94 5.8125 934,036.46
10,000,000 10/26/94 01/26/95 6.2500 116,319.44
15,000,000 10/31/94 12/30/94 5.8750 146,875.00
17,000,000 11/14/94 12/14/94 5.9375 84,114.58
20,000,000 11/23/94 01/24/95 6.1700 133,683.33
5,000,000 11/23/94 01/24/95 6.4600 34,991.67
28,000,000 11/23/94 01/21/95 5.9375 180,104.16
37,000,000 12/06/94 03/06/95 5.9375 158,663.19
17,000,000 12/14/94 03/14/95 7.0000 59,500.00
84,000,000 12/28/94 02/28/95 6.7500 63,000.00
15,000,000 12/30/94 02/28/95 6.9375 5,781.25
---------------
3,328,313.51
Interest Rate Swap (141,784.72)
Fees (Primarily facility) 98,260.88
---------------
Total Old Program $3,284,789.67
---------------
<PAGE>
<TABLE>
Exhibit i
NEW ENGLAND ENERGY INCORPORATED
Fuel Purchased for NEP
for the Quarter Ended December 31, 1994
-----------------------------------------
<CAPTION>
Exploration (and Procurement*)
- ------------------------------
Date purchased (delivered)
Oct. 4, 1994 Oct. 8, 1994 Oct. 11, 1994
------------- ---------------------------
<S> <C> <C> <C>
Quantity of fuel (eq. bbls) 165,477.74 164,077.35 166,262.60
Average net price (per eq. bbl) $ 6.22 $ 6.57 $ 8.76
------------- ------------- -------------
Cost to NEEI $1,029,454.81 $1,078,450.21 $1,456,815.50
Loss from NEEI fuel
exploration activities 2,039,954.96 2,022,691.43 2,049,630.45
------------- ------------- -------------
Cost to NEP $3,069,409.77 $3,101,141.64 $3,506,445.95
----------------------------- -------------
Date purchased (delivered) Oct. 17, 1994 Oct. 27, 1994 Nov. 13, 1994
------------- ---------------------------
Quantity of fuel (eq. bbls) 164,309.92 162,098.92 164,717.60
Average net price (per eq. bbl) $ 6.22 $ 6.20 $ 6.35
------------- ---------- ---- -------------
Cost to NEEI $1,022,151.31 $1,005,642.82 $1,046,676.40
Loss from NEEI fuel
exploration activities 2,025,558.53 1,998,302.08 2,030,584.20
------------- ------------- ------------
Cost to NEP $3,047,709.84 $3,003,944.90 $3,077,260.60
------------- ------------- -------------
Date purchased (delivered) Dec. 6, 1994 Dec. 6, 1994
------------- -------------
Quantity of fuel (bbl) 108,658.93 72,319.33
Average net price (per bbl) $ 12.33 $ 19.87
------------- -------------
Cost to NEEI $1,339,460.83 $4,437,342.91
Loss from NEEI fuel
exploration activities 1,339,460.83 *
------------- -------------
Cost to NEP $2,678,921.66 $1,437,342.91
------------- -------------
</TABLE>
