<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 first quarter of 1996:
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:
<TABLE>
Old Program
-----------
<CAPTION>
Natural Gas
Oil and ----------- Total
Condensate Equivalent Equivalent
Bbl. MCF Bbl. Bbl.
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Balance 1/1/96 961,675 62,533,876 10,422,314 11,383,989
Additions & Revisions
through 3/31/96 - - - -
--------- ----------- ---------- ----------
Balance 961,675 62,533,876 10,422,314 11,383,989
Production 1st Qtr. 1996 (96,998) (3,561,648) (593,608) (690,606)
--------- ----------- ---------- ----------
Balance 3/31/96 864,677 58,972,228 9,828,706 10,693,383
--------- ----------- ---------- ----------
</TABLE>
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 0 762
Dorchester 0 51
-- -----
0 813
-- -----
No. of productive wells
Samedan 0 1,139*
Dorchester 0 69*
-- ------
0 1,208*
-- ------
No. of wells drilled 0 2,021
(both exploration and development) -- -----
* Includes depleted/sold wells as follows:
Samedan 0 469
Dorchester 0 69
-- -----
0 538
-- -----
New Program
-----------
None.
INVESTMENT
----------
Budget Authorized
Actual By SEC
--------------------------------- -----------------
Since Since
Quarter 1/1/96 1/1/95 1995 - 1998
--------- --------- ---------- -----------------
Samedan $439,519 $439,519 $5,856,397 $30,000,000 (A)
(A) Authorized through December 31, 1998, by Order dated
December 20, 1994 (Release No. 35-26197; 70-7055).
<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 Inception
Ended Thru
3/31/96 3/31/96
-------- --------
<S> <C> <C>
2. Sales to nonaffiliates
(Exhibit c.):
Equivalent barrels of fuel
produced 690,606 49,040,500
Average price per barrel $ 12.25 $ 14.02
----------- ------------
Sales revenues $ 8,459,667 $687,383,496
3. Loss to NEP 7,973,306 336,804,821
4. Flow through of excess deferred 639,663 82,063,592
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 $17,072,636 $1,142,289,475
----------- --------------
New Program: None.
f. Credits applied to
New England Power Company (NEP):
1. Disposition of proceeds:
Amortization of cost of
fuel reserves $15,738,920 $1,048,515,864
Production costs 1,069,416 79,078,888
State taxes 264,300 9,216,975
Savings to NEP - 8,701,242
Royalty to NEP - 1,099,807
Other - 65,472
----------- --------------
Total $17,072,636 $1,146,678,248
----------- --------------
Net income/(loss)/retained $ - $ (4,388,773)
deficit ----------- --------------
<PAGE>
-4-
f. continued
Quarter Inception
Ended Thru
3/31/96 3/31/96
-------- ---------
2. Royalties prepaid to NEP:
Beginning balance in account $ 342,312$ -
------------------------
Royalties/savings earned - (9,801,049)
Royalties passed on to NEP - 10,143,361 *
------------------------
Ending balance in account $ 342,312$ 342,312
------------------------
3. Losses to be passed on to NEP:
Beginning balance in account $ 43,731,259$ -
------------------------
Losses accrued 7,973,306 336,804,821
Losses passed on to NEP** (20,597,670) (305,697,926)
------------------------
Ending balance in account $ 31,106,895$ 31,106,895
------------------------
</TABLE>
* 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.
<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
December 31, 1995 (net)
Subordinated notes 4,482,244 15,743,491 1 -
Common stock and premium 250,000 - -
----------- ----------- ------------
Total investment by NEES 4,732,244 15,743,491 -
Investment by NEES-during the
quarter (net)
Subordinated notes (946,082) - -
Total investment by NEES through
March 31, 1996 (net)
Subordinated notes 3,536,162 15,743,491 -
Common stock and premium 250,000 - -
----------- ----------- ------------
$ 3,786,162 $15,743,491 $ -
----------- ----------- ------------
2. Increase or Reduction in Investment
by NEES:
Date Amount Date Amount Date Amount
---- ------ ---- ------ ---- ------
Issues of subordinated notes
to NEES during quarter 3/13/96$ 553,918 $ - $ -
ended March 31, 1996 3/29/96 2,500,000
Payments of
subordinated notes to NEES 2/15/96 (600,000)
during quarter ended 2/23/96 (1,400,000)
March 31, 1996 3/18/96 (2,000,000) $ - $ -
------------ ------- -------
Net change in investment $ (946,082) $ - $ -
------------ ------- -------
_______________
(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 March 31, 1996, (unaudited, subject
to adjustment)
Exhibit h-2 Statement of Income and Retained Deficit of NEEI for the
quarter ended March 31, 1996 (unaudited, subject to adjustment)
Exhibit h-3 Statement of Cash Flows of NEEI for the quarter ended
March 31, 1996 (unaudited, subject to adjustment)
Exhibit h-4 Computation of Bank Interest for the quarter ended
March 31, 1996
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) 1st Quarter
Quantity of fuel (equiv. bbl) 1,435,183.62
Average net price (per equiv. bbl) $ 6.71
-------------
Cost to NEEI $ 9,623,904
Loss from NEEI fuel
exploration activities 20,597,670
-------------
Cost to NEP 30,221,574
Adjustments, inspection charges, etc. -
------------- -----------
Total $30,221,574
===========
k. Use of Proceeds from Sales of NEEI New Program Production:
None.
<PAGE>
-7-
Sale of NEEI Wells
------------------
Old Program
- -----------
During the period from January 1, 1996 through March 31, 1996, NEEI
disposed of its interest in Existing (Old) Program wells containing proved or
probable reserves as follows:
<TABLE>
<CAPTION>
Est. Net Reserves
Effective (Eq. Bbls) as
Date of of Date of
Prospect Location Disposition Disposition
------------ ------------------ ------------- ---------------
<S> <C> <C> <C>
Leslie Spring Chaves County, NM
McKay Samedan Well #1&2 6/01/95* 0
State 16, #3,4 Chaves County, NM 10/01/95* 1,553
Kildare Smackover Cass County, TX
E. Rodessa Unit 11/01/95* 0
Fort Cobb Caddo County, OK
King Well #(1-2) 11/11/95* 0
-----
1,553
=====
* Reported by Samedan in the first quarter of 1996.
</TABLE>
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 1,553 barrels of remaining reserves in the calculation of the royalty
for 1995. 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 1994 totalling $284,822,524 which were passed on to NEP in 1988
through 1995. NEEI's Old Program loss of $43,731,259, incurred in 1995, is
being passed on to NEP in 1996.
<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: May 15, 1996
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 Filed herewith
prospect (Old Program)
c Production and net revenue Filed herewith
(Old Program)
h-1 Balance Sheet at March 31, 1996 Filed herewith
(Unaudited, Subject to Adjustment)
h-2 Statement of Income and Retained Filed herewith
Deficit for the Quarter Ended
March 31, 1996 (Unaudited,
Subject to Adjustment)
h-3 Statement of Cash Flows for the Filed herewith
Quarter Ended March 31, 1996
(Unaudited, Subject to Adjustment)
h-4 Computation of Bank Interest for the Filed herewith
Quarter Ended March 31, 1996
i Fuel Purchased for NEP for the Filed herewith
Quarter Ended March 31, 1996
j-1 Monthly Report of Cost and Quality Filed herewith
of Fuels for Electric Plants
January 1996 (Brayton Point)
j-2 Monthly Report of Cost and Quality Filed herewith
of Fuels for Electric Plants
January 1996 (Salem Harbor)
j-3 Monthly Report of Cost and Quality Filed herewith
of Fuels for Electric Plants
February 1996 (Brayton Point)
j-4 Monthly Report of Cost and Quality Filed herewith
of Fuels for Electric Plants
February 1996 (Salem Harbor)
j-5 Monthly Report of Cost and Quality Filed herewith
of Fuels for Electric Plants
March 1996 (Brayton Point)
j-6 Monthly Report of Cost and Quality Filed herewith
of Fuels for Electric Plants
March 1996 (Salem Harbor)
<PAGE>
<TABLE>
Exhibit a
NEW ENGLAND ENERGY INCORPORATED
INVESTMENT IN PARTNERSHIPS BY PROSPECT - OLD PROGRAM
MARCH 31, 1996
<CAPTION>
ESTIMATED TOTAL COST
---------------------------------------------------
Samedan Prospect Name Exploration Development* Total
- ------- ------------- ----------- ------------ ---------
<S> <C> <C> <C> <C>
62583 Brazo 50-54/37&8/65-7 17,314,784.31 49,033,189.35 66,347,973.66
62436 Eugene Island 247/8/9 5,266,643.34 23,376,143.56 28,642,786.90
61402 Northeast Chevron 2,564,439.34 23,294,427.25 25,858,866.59
62493 Eugene Island Blk 208 1,581,084.43 18,841,421.00 20,422,505.43
62559 West Delta 18/33 8,370,233.06 10,919,034.59 19,289,267.65
62479 Main Pass 90/93+4/102+5 3,857,539.09 14,655,669.24 18,513,208.33
62367 Hl 21/22/22L/34/50/51 3,950,000.92 14,215,857.33 18,165,858.25
61998 High Island A365/A376 0.00 12,032,006.97 12,032,006.97
62282 West Cameron b131/132 4,678,480.72 7,182,957.68 11,861,438.40
62289 Main Pass 107/108 1,447,333.69 8,031,094.86 9,478,428.55
62468 Vermilion 114/109 1,914,848.45 5,375,635.48 7,290,483.93
61898 Eugene Island B 24&27 2,966,098.22 4,028,068.37 6,994,166.59
62331 West Delta 27/28/48 2,746,928.39 3,881,364.84 6,628,293.23
21494 Banner 311,363.33 5,302,574.00 5,613,937.33
62554 Eugene Island 28 1,739,766.26 3,779,200.79 5,518,967.05
62366 Brazos 400.12.13.435 1,778,642.70 3,598,632.54 5,377,275.24
61501 Vermilion 241/261 (EC) 2,221,789.49 3,078,515.66 5,300,305.15
62365 Matagorda Is B 586/87 2,151,279.02 2,517,546.64 4,668,825.66
53330 Derrick Draw/ PDR RIV 2,266,244.89 1,323,752.96 3,589,997.85
62558 South Timbalier 197 2,307,523.54 531,751.78 2,839,275.32
51673 Williston 0.00 2,641,589.99 2,641,589.99
62377 Vermilion Block 76 945,194.84 1,652,785.69 2,597,980.53
62543 West Cameron 433/457 333,052.15 2,246,051.71 2,579,103.86
62284 Vermilion Blk 167 924,503.21 1,513,546.36 2,438,049.57
62322 West Cameron Blk 67 0.00 2,420,322.67 2,420,322.67
51947 Powder River Basin 2,415,841.82 0.00 2,415,841.82
21617 Fort Cobb 405,559.36 1,717,546.52 2,123,105.88
42004 Provident City/Speaks 0.00 2,041,621.10 2,041,621.10
42017 Kildare Smackover T 975,610.29 0.00 975,610.29
Other 15,755,378.27 25,656,882.16 41,412,260.43
-------------- -------------- --------------
Total Productive Samedan 91,190,163.13 254,889,191.09 346,079,354.22
-------------- -------------- --------------
Dry Holes
Samedan (including depleted wells) 398,129,410.49 398,129,410.49
Work in Process
Samedan 4,210,569.40 4,210,569.40
Dorchester (terminated investment) 67,401,440.17 67,401,440.17
-------------- -------------- --------------
Grand Total 560,931,583.19 254,889,191.09 815,820,774.28
============== ============== ==============
*Includes Lease Acquisition
</TABLE>
<PAGE>
<TABLE>
Exhibit c
NEW ENGLAND ENERGY INCORPORATED
PRODUCTION AND NET REVENUE - OLD PROGRAM
FOR THE QUARTER ENDED MARCH 31, 1996
<CAPTION>
Production Revenue
----------------------------------------------------------------
Oil and
Prospect Condensate Gas Oil and
No. Prospect Name Bbls. MCF Condensate Gas Total
- -------- ------------- ---------- ----- ---------- ----- -------
<S> <C> <C> <C> <C> <C> <C>
62583 Brazo 50-54/37&8/65-7 4,258.79 1,025,091.90 77,173.972,067,184.422,144,358.39
62479 Main Pass 90/93+4/102+5 400,338.96 954,617.46 954,617.46
62289 Main Pass 107/108 4,543.76 481,694.94 81,891.35 858,270.68 940,162.03
62367 Hl 21/22/22L/34/50/51 1,607.61 372,835.02 28,942.00 757,471.52 786,413.52
60998 High Island A365/A376 8,519.15 96,277.02 146,486.41 178,101.63 324,588.04
61898 Eugene Island B 24&27 6,952.72 106,363.02 116,472.83 197,713.44 314,186.27
62554 Eugene Island 28 6,223.68 91,615.98 104,312.68 163,980.38 268,293.06
62331 West Delta 27/28/48 15,869.86 2,324.04 258,100.35 4,951.33 263,051.68
62366 Brazos 400.12.13.435 531.68 130,313.04 8,769.09 247,417.18 256,186.27
62365 Matagorda Is B 586/87 96.94 152,944.98 1,565.85 238,460.58 240,026.43
62288 West Cameron Blk 290 279.85 128,983.02 4,565.74 232,103.72 236,669.46
53330 Derrick Draw/PDR RIV 12,823.41 840.00 214,530.46 511.68 214,042.14
62582 Brazos 476/491/449 68.32 103,995.96 1,218.95 193,449.66 194,668.61
42017 Kildare Smackover T 9,278.68 11,181.18 155,730.40 13,950.23 169,680.63
62493 Eugene Island Blk 208 8,567.05 3,901.98 150,961.79 10,117.19 161,078.98
62284 Vermilion Blk 167 5,683.54 6,130.98 103,733.03 15,681.57 119,414.60
Other 11,693.39 446,815.92 193,207.55 678,020.81 871,228.36
--------- ------------------------ ------------ ------------
Totals 96,998.43 3,561,647.94 1,647,662.456,812,003.488,459,665.93
========= ======================== ============ ============
</TABLE>
<PAGE>
<TABLE>
Exhibit h-1
NEW ENGLAND ENERGY INCORPORATED
Balance Sheet
March 31, 1996
(Unaudited, Subject to Adjustment)
<CAPTION>
ASSETS
- ------
Old Program New Program Combined
----------- ----------- --------
<S> <C> <C> <C>
Current assets:
Cash, including temporary cash investments
of $4,750,000 with affiliated companies $ 4,753,622 $ 25,231 $ 4,778,853
Accounts receivable:
Affiliated companies:
- accrued loss to be passed
on to affiliate 31,106,895 - 31,106,895
- from sales of oil 6,877,082 - 6,877,082
- other 31,857 410 32,267
Prepaid expenses 342,312 - 342,312
-------------- ------------ --------------
Total current assets 43,111,768 25,641 43,137,409
-------------- ------------ --------------
Property at cost:
Cost of fuel reserves:
Exploration and development costs:
Samedan 744,208,765 - 744,208,765
Dorchester 67,401,440 - 67,401,440
Cost of capital 445,838,030 - 445,838,030
Other 34,873,131 - 34,873,131
-------------- ------------ --------------
1,292,321,366 - 1,292,321,366
Less-accumulated amortization (1,048,515,864) -(1,048,515,864)
-------------- ------------ --------------
Net cost of fuel reserves 243,805,502 - 243,805,502
Work in process - Samedan 4,210,569 - 4,210,569
-------------- ------------ --------------
Total property 248,016,071 - 248,016,071
-------------- ------------ --------------
$ 291,127,839 $ 25,641 $ 291,153,480
============== ============ ==============
LIABILITIES AND PARENT COMPANY'S INVESTMENT
- -------------------------------------------
Current liabilities:
Accrued exploration and development costs $ 27,838,513 $ $ 27,838,513*
Accounts payable 3,823,354 250,309 4,073,663
Accrued interest 1,128,468 - 1,128,468
Accrued taxes payable 10,631,100 (178,054) 10,453,046
-------------- ------------ --------------
Total current liabilities 43,421,435 72,255 43,493,690
-------------- ------------ --------------
Deferred income taxes 82,302,359 (42,800) 82,259,559
-------------- ------------ --------------
Deferred credit 3,534,400 - 3,534,400
-------------- ------------ --------------
Notes payable to banks under credit agreement 166,000,000 - 166,000,000
-------------- ------------ --------------
Parent company's investment:
Subordinated notes payable to parent 3,536,16215,743,491 19,279,653
Common stock, par value $1 per share 2,500 - 2,500
Paid-in capital 247,500 - 247,500
Retained deficit (7,916,517) (15,747,305) (23,663,822)
-------------- ------------ --------------
Total parent company's investment (4,130,355) (3,814) (4,134,169)
-------------- ------------ --------------
$ 291,127,839 $ 25,641 $ 291,153,480
============== ============ ==============
*Accrued exploration and development costs:
Total
(All Samedan)
-------------
Exploration $10,274,339
Development 17,514,802
Work in process (299,981)
Advance 349,353
-----------
$27,838,513
===========
</TABLE>
<PAGE>
<TABLE>
Exhibit h-2
NEW ENGLAND ENERGY INCORPORATED
Statements of Income and Retained Deficit
For the Quarter Ended March 31, 1995
(Unaudited, Subject to Adjustment)
<CAPTION>
Old Program New Program Combined
----------- ----------- --------
<S> <C> <C> <C>
Operating revenue:
Sales of fuel to an affiliate $ 30,221,573$ -$ 30,221,573
Loss passed on to an affiliate (20,597,670) - (20,597,670)
Accrued loss to be passed on to an affiliate7,973,306 - 7,973,306
Sales to nonaffiliates:
Oil 1,647,663 3 1,647,666
Gas 6,812,004 3,290 6,815,294
------------------------------------
Total operating revenue 26,056,876 3,293 26,060,169
------------------------------------
Operating expenses:
Purchases of fuel for an affiliate 9,623,904 - 9,623,904
Amortization of cost of fuel reserves 15,738,920 - 15,738,920
Production costs 1,069,416 366 1,069,782
------------------------------------
Total operating expenses 26,432,240 366 26,432,606
------------------------------------
Operating income/(loss) (375,364) 2,927 (372,437)
Other income/(expense):
Interest income - - -
Interest expense (564,446) - (564,446)
Other expense (18,697) - (18,697)
State taxes (243,300) - (243,300)
------------------------------------
Operating and other income/(loss) (1,201,807) 2,927 (1,198,880)
------------------------------------
Federal income taxes:
Current federal income taxes 8,300,200 800 8,301,000
Deferred federal income taxes (9,138,500) - (9,138,500)
------------------------------------
Net federal income taxes (838,300) 800 (837,500)
------------------------------------
Net income (363,507) 2,127 (361,380)
Retained deficit at beginning of period (7,553,010)(15,749,432)(23,302,442)
------------------------------------
Retained deficit at end of period $ (7,916,517) $(15,747,305) $(23,663,822)
============ ============ ============
</TABLE>
<PAGE>
<TABLE>
Exhibit h-3
NEW ENGLAND ENERGY INCORPORATED
Statements of Cash Flows
For the Quarter Ended March 31, 1996
(Unaudited, Subject to Adjustment)
<CAPTION>
Old Program New Program Combined
----------- ----------- --------
<S> <C> <C> <C>
Operating Activities:
Net income $ (363,507)$ 2,127$ (361,380)
Adjustments to reconcile net income to
net cash provided by operating activities:
Amortization of cost of fuel reserves 15,738,920 - 15,738,920
Loss passed on to an affiliate 20,597,670 - 20,597,670
Accrued loss to be passed on to an affiliate (7,973,306) -(7,973,306)
Deferred income taxes (9,615,600) - (9,615,600)
(Increase)/decrease in accounts receivable
(excluding loss to be passed on to affiliate) (6,821,037) - (6,821,037)
Increase/(decrease) in accrued exploration
and development costs 603,084 - 603,084
Increase/(decrease) in accounts payable 1,985,597 366 1,985,963
Increase/(decrease) in accrued interest payable 368,212 -368,212
Increase/(decrease) in accrued taxes payable 9,074,800 800 9,075,600
------------ ---------------------
Net cash provided by operating activities $ 23,594,833 $ 3,293 $ 23,598,126
------------ ---------------------
Investing Activities:
Investment in property - Samedan:
Exploration (also includes dry holes, depleted
wells and work in process) $ (178,190)$ -$ (178,190)
Development (also reflects transfer of
depleted wells) (263,874) - (263,874)
Capital costs (1,973,839) - (1,973,839)
Other (590,416) - (590,416)
------------ ---------------------
Net cash used in investing activities $ (3,006,319)$ -$ (3,006,319)
------------ ---------------------
Financing Activities:
Subordinated notes payable to parent-issues $ 3,053,918 $ - $ 3,053,918
Subordinated notes payable to parent-retirements (4,000,000) - (4,000,000)
Changes in notes payable to bank under
credit agreement (16,000,000) - (16,000,000)
------------ ---------------------
Net cash used in financing activities $(16,946,082)$ -$(16,946,082)
------------ ---------------------
Net increase/(decrease) in cash and cash equivalents $ 3,642,432 $ 3,293 $ 3,645,725
Cash and cash equivalents at beginning of period1,111,190 21,938 1,133,128
------------ ---------------------
Cash and cash equivalents at end of period $ 4,753,622 $ 25,231$ 4,778,853
------------ ---------------------
</TABLE>
<PAGE>
<TABLE>
Exhibit h-4
NEW ENGLAND ENERGY INCORPORATED
Computation of Bank Interest
Quarter Ended March 31, 1996
-------------------------------
Cost of Notes Payable to Banks Under Credit Agreement
- -----------------------------------------------------
<CAPTION>
Date Paid
Date or Maturity Annual
Amount Issued Date Rate % Total
------ ------ ----------- ------ -----
<S> <C> <C> <C> <C>
Old Program
-----------
$ 54,000,000 12/13/95 02/13/96 6.1100 $ 394,095.00
30,000,000 12/29/95 01/29/96 5.9850 139,650.00
12,000,000 11/15/95 01/16/96 6.1250 30,625.00
49,000,000 11/15/95 01/16/96 6.1725 126,021.88
47,000,000 01/16/96 04/16/96 5.8600 581,442.22
4,000,000 01/16/96 02/16/96 5.8450 20,782.22
10,000,000 01/16/96 02/16/96 5.8250 51,777.78
30,000,000 01/29/96 02/29/96 5.7975 149,768.75
40,000,000 02/13/96 02/13/97 5.2975 282,533.33
15,000,000 02/13/96 08/13/96 5.4225 108,450.00
14,000,000 02/16/96 03/18/96 5.5475 69,035.56
23,000,000 02/29/96 03/29/96 5.5475 102,782.85
14,000,000 03/18/96 04/18/96 5.6725 30,883.61
13,000,000 03/29/96 04/29/96 5.6725 6,145.21
37,000,000 12/13/95 06/13/96 5.9225 553,918.26
-------------
2,647,911.67
Interest Rate Swap (169,839.81)
Fees (Primarily facility) 55,029.19
-------------
Total Old Program $2,533,101.05
-------------
</TABLE>
<PAGE>
<TABLE>
Exhibit i
NEW ENGLAND ENERGY INCORPORATED
Fuel Purchased for NEP
for the Quarter Ended March 31, 1996
-----------------------------------------
<CAPTION>
Exploration
- -----------
Date purchased (delivered)
Jan. 24, 1996 Jan. 29, 1996 Feb. 14, 1996
------------- ------------- -------------
<S> <C> <C> <C> <C>
Quantity of fuel (eq. bbl) 224,543.63 153,431.23 129,225.04
Average net price (per eq. bbl) $ 7.09 $ 7.17$ 6.40
---------- --- ---------- --- --------------
Cost to NEEI $1,593,048.63$1,100,359.21$ 827,416.61
Loss from NEEI fuel
exploration activities 3,222,635.26 2,202,036.09 1,854,630.19
---------- ---------- ----------
Cost to NEP $4,815,683.89$3,302,395.32$2,682,046.80
---------- -- --- ------------- ------------
Date purchased (delivered) Feb. 17, 1996 Feb. 20, 1996
------------- -------------
Quantity of fuel (eq. bbl) 149,743.13 164,582.05
Average net price (per eq. bbl) $ 7.25 $ 6.17
------------- ---------- ---
Cost to NEEI $1,085,449.76$1,015,854.76
------------- ---------- ---
Loss from NEEI fuel
exploration activities 2,149,104.68 2,362,072.02
------------- ---------- ---
Cost to NEP $3,234,554.44$3,377,926.78
---------- --- ---------- ---
Date purchased (delivered) Feb. 25, 1996 Feb. 26, 1996 Mar. 12, 1996 Mar. 15, 1996
------------ ------------- ------------- -------------
Quantity of fuel (eq. bbl) 122,189.93 163,617.15 166,829.92 161,021.55
Average net price (per eq. bbl) $ 6.40$ 6.40$ 6.72 $ 6.53
---------------- ---------------- ------------- --------------
Cost to NEEI $ 782,371.44 $1,047,626.30 $1,120,837.94 $ 1,050,939.18
Loss from NEEI fuel
exploration activities 1,753,662.76 2,348,223.78 2,394,333.35 2,310,971.88
------------ ------------- ------------ -------------
Cost to NEP $2,536,034.20 $3,395,850.08 $3,515,171.29 $3,361,911.06
------------- ------------- ------------- -------------
</TABLE>
<PAGE>
<TABLE>
Exhibit j-1
<CAPTION>
Monthly Cost and Quality of Fuels for Electric Plants
FERC 429 Facsimile
<S> <C> <C>
01 Company-Plant Code 13433-1619
02 Month & Year of Report 01/96
03 Reporting Company New England Electric
04 Page Number 1
05 Plant Name Brayton Point
06 Plant Location Brayton Point Road, Somerset, MA 02726
07 Person to be Contacted Fuel Dept.
Concerning Data Coal Group
Entered on this Form 25 Research Drive, Westboro, MA 01582
08 Telephone Number 508-389-3029 / 508-389-3227
09 Signature of Official
Submitting this Report s/ Mary E. O'Neil
10 Title Senior Fuel Analyst
11 Date Report Completed March 19, 1996
<CAPTION>
Purchases Coal Mines Only Source Data
--------- -------------------------- -------------------------------------------------------
Quality as Received
Cont Fuel Coal State County Originating Quantity ------------------- Purch Price
Type Expir Type Type Dist Abbr No Location Received BTU Sulfur Ash Cents/MMBT
(1) (2) (3) (4)
---- ----- ---- ---- ---- ----- ------ ----------- -------- --- ------ ---- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12 C 02/96 BIT S 999 IM 045 CAYPA 28.2 11918 0.68 5.75 168.62
13 C 06/98 BIT S 8 WV 045 DALTEX 9.5 12358 0.72 11.36 165.40
14 C 12/96 BIT S 50 IM 999 DIABLO PASO 14.1 12874 0.72 6.05 151.33
15 C 11/95 BIT S 8 WV 045 HOBET 3.9 12358 0.72 11.36 166.10
16 C 06/98 BIT S 8 WV 045 HOBET 16.8 12358 0.72 11.36 163.32
17 C 03/96 BIT U 50 IM 999 NORTE DE SANTAN 26.6 13003 0.77 7.96 162.43
18 C 03/98 BIT U 8 KY 159 PONTIKI 31.7 12828 0.76 7.07 191.65
19 C 12/95 BIT U 8 WV 045 RUM CREEK 6.6 12562 0.75 10.81 163.08
20 C 06/96 BIT U 8 WV 045 RUM CREEK 25.2 12486 0.71 11.19 174.21
21 C 05/98 BIT S 8 WV 39 SAMPLES 14.8 12675 0.70 11.87 176.57
22 C 02/96 BIT U 08 KY 195 WHITES CLOUD 7.5 12712 0.70 6.28 142.76
<FN>
(1) Coal = 1,000 tons (2) Coal per lb (3) and (4) Percent
Oil = 1,000 bbls Oil per gal
Gas = 1,000 Mcf Gas per cu ft
</FN>
</TABLE>
<PAGE>
<TABLE>
Exhibit j-2
<CAPTION>
Monthly Cost and Quality of Fuels for Electric Plants
FERC 429 Facsimile
<S> <C> <C>
01 Company-Plant Code 13433-1626
02 Month & Year of Report 01/96
03 Reporting Company New England Electric
04 Page Number 1
05 Plant Name Salem Harbor
06 Plant Location 24 Fort Ave., Salem, MA 01970
07 Person to be Contacted Fuel Dept.
Concerning Data Coal Group
Entered on this Form 25 Research Drive, Westboro, MA 01582
08 Telephone Number 508-389-3029 / 508-389-3227
09 Signature of Official
Submitting this Report s/ Mary E. O'Neil
10 Title Senior Fuel Analyst
11 Date Report Completed March 12, 1996
<CAPTION>
Purchases Coal Mines Only Source Data
--------- -------------------------- -------------------------------------------------------
Quality as Received
Cont Fuel Coal State County Originating Quantity ------------------- Purch Price
Type Expir Type Type Dist Abbr No Location Received BTU Sulfur Ash Cents/MMBT
(1) (2) (3) (4)
---- ----- ---- ---- ---- ----- ------ ----------- -------- --- ------ ---- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12 C 12/95 BIT S 50 IM 999 DIABLO PASO 37.0 12855 0.75 6.64 150.20
13 C 12/96 BIT S 50 IM 999 DIABLO PASO 77.6 12833 0.74 6.34 154.37
<FN>
(1) Coal = 1,000 tons (2) Coal per lb (3) and (4) Percent
Oil = 1,000 bbls Oil per gal
Gas = 1,000 Mcf Gas per cu ft
</FN>
</TABLE>
<PAGE>
<TABLE>
Exhibit j-3
<CAPTION>
Monthly Cost and Quality of Fuels for Electric Plants
FERC 429 Facsimile
<S> <C> <C>
01 Company-Plant Code 13433-1619
02 Month & Year of Report 02/96
03 Reporting Company New England Electric
04 Page Number 1
05 Plant Name Brayton Point
06 Plant Location Brayton Point Road, Somerset, MA 02726
07 Person to be Contacted Fuel Dept.
Concerning Data Coal Group
Entered on this Form 25 Research Drive, Westboro, MA 01582
08 Telephone Number 508-389-3029 / 508-389-3227
09 Signature of Official
Submitting this Report s/ Mary E. O'Neil
10 Title Senior Fuel Analyst
11 Date Report Completed April 9, 1996
<CAPTION>
Purchases Coal Mines Only Source Data
--------- -------------------------- -------------------------------------------------------
Quality as Received
Cont Fuel Coal State County Originating Quantity ------------------- Purch Price
Type Expir Type Type Dist Abbr No Location Received BTU Sulfur Ash Cents/MMBT
(1) (2) (3) (4)
---- ----- ---- ---- ---- ----- ------ ----------- -------- --- ------ ---- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12 C 06/96 BIT U 08 WV 059 ASHLAND 71.1 12924 0.75 8.90 180.83
13 S 04/96 BIT U 08 WV 059 ASHLAND 29.7 13010 0.75 8.11 193.22
14 C 12/98 BIT S 45 IMP 999 EL CERREJON 33.8 12096 0.58 5.64 141.05
15 S 05/96 BIT U 8 WV 5 HAMPTON 10.0 12500 0.68 10.89 170.95
16 C 12/96 BIT U 8 KY 159 MARTIN COUNTY 18.9 12467 0.69 9.53 175.72
17 C 12/96 BIT U 8 WV 599 MINGO LOGAN 10.5 13118 0.74 8.61 185.29
18 S 04/96 BIT S 45 IMP 999 OREGANAL 42.1 11334 0.65 5.09 161.84
19 C 06/96 BIT U 8 WV 045 RUM CREEK 111.7 12480 0.70 10.76 184.41
20 C 12/96 BIT U 8 WV 059 SIDNEY COAL 21.1 12467 0.69 9.53 173.72
<FN>
(1) Coal = 1,000 tons (2) Coal per lb (3) and (4) Percent
Oil = 1,000 bbls Oil per gal
Gas = 1,000 Mcf Gas per cu ft
</FN>
</TABLE>
<PAGE>
<TABLE>
Exhibit j-4
<CAPTION>
Monthly Cost and Quality of Fuels for Electric Plants
FERC 429 Facsimile
<S> <C> <C>
01 Company-Plant Code 13433-1626
02 Month & Year of Report 02/96
03 Reporting Company New England Electric
04 Page Number 1
05 Plant Name Salem Harbor
06 Plant Location 24 Fort Ave., Salem, MA 01970
07 Person to be Contacted Fuel Dept.
Concerning Data Coal Group
Entered on this Form 25 Research Drive, Westboro, MA 01582
08 Telephone Number 508-389-3029 / 508-389-3227
09 Signature of Official
Submitting this Report s/ Mary E. O'Neil
10 Title Senior Fuel Analyst
11 Date Report Completed April 9, 1996
<CAPTION>
Purchases Coal Mines Only Source Data
--------- -------------------------- -------------------------------------------------------
Quality as Received
Cont Fuel Coal State County Originating Quantity ------------------- Purch Price
Type Expir Type Type Dist Abbr No Location Received BTU Sulfur Ash Cents/MMBT
(1) (2) (3) (4)
---- ----- ---- ---- ---- ----- ------ ----------- -------- --- ------ ---- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12 C 12/95 BIT S 50 IM 999 DIABLO PASO 36.3 12906 0.66 5.68 154.45
13 C 12/96 BIT S 45 imp 999 EL CERREJON 51.3 12192 0.58 5.44 146.26
<FN>
(1) Coal = 1,000 tons (2) Coal per lb (3) and (4) Percent
Oil = 1,000 bbls Oil per gal
Gas = 1,000 Mcf Gas per cu ft
</FN>
</TABLE>
<PAGE>
<TABLE>
Exhibit j-5
<CAPTION>
Monthly Cost and Quality of Fuels for Electric Plants
FERC 429 Facsimile
<S> <C> <C>
01 Company-Plant Code 13433-1619
02 Month & Year of Report 03/96
03 Reporting Company New England Electric
04 Page Number 1
05 Plant Name Brayton Point
06 Plant Location Brayton Point Road, Somerset, MA 02726
07 Person to be Contacted Fuel Dept.
Concerning Data Coal Group
Entered on this Form 25 Research Drive, Westboro, MA 01582
08 Telephone Number 508-389-3029 / 508-389-3227
09 Signature of Official
Submitting this Report s/ Mary E. O'Neil
10 Title Senior Fuel Analyst
11 Date Report Completed May 14, 1996
<CAPTION>
Purchases Coal Mines Only Source Data
--------- -------------------------- -------------------------------------------------------
Quality as Received
Cont Fuel Coal State County Originating Quantity ------------------- Purch Price
Type Expir Type Type Dist Abbr No Location Received BTU Sulfur Ash Cents/MMBT
(1) (2) (3) (4)
---- ----- ---- ---- ---- ----- ------ ----------- -------- --- ------ ---- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12 C 04/96 BIT U 8 WV 059 ASHLAND 40.5 12890 0.68 8.58 176.15
13 S 05/96 BIT U 8 WV 15 FOLA 15.1 12500 0.68 10.89 177.65
14 S 04/96 BIT U 8 WV 15 FOLA-CR 20.0 12633 0.65 10.79 182.67
15 C 04/96 BIT U 8 KY 159 MARTIN COUNTY 14.8 12733 0.69 9.43 182.85
16 S 04/96 BIT U 8 KY 159 MARTIN COUNTY 20.1 12641 0.75 9.54 181.57
17 C 06/96 BIT U 8 WV 045 RUM CREEK 4.9 12390 0.68 10.00 173.53
18 C 04/96 BIT U 8 WV 059 SIDNEY COAL 24.3 12733 0.69 9.43 182.85
19 S 04/96 BIT U 8 WV 059 SIDNEY COAL 20.5 12641 0.75 9.54 181.57
<FN>
(1) Coal = 1,000 tons (2) Coal per lb (3) and (4) Percent
Oil = 1,000 bbls Oil per gal
Gas = 1,000 Mcf Gas per cu ft
</FN>
</TABLE>
<PAGE>
<TABLE>
Exhibit j-6
<CAPTION>
Monthly Cost and Quality of Fuels for Electric Plants
FERC 429 Facsimile
<S> <C> <C>
01 Company-Plant Code 13433-1626
02 Month & Year of Report 03/96
03 Reporting Company New England Electric
04 Page Number 1
05 Plant Name Salem Harbor
06 Plant Location 24 Fort Ave., Salem, MA 01970
07 Person to be Contacted Fuel Dept.
Concerning Data Coal Group
Entered on this Form 25 Research Drive, Westboro, MA 01582
08 Telephone Number 508-389-3029 / 508-389-3227
09 Signature of Official
Submitting this Report s/ Mary E. O'Neil
10 Title Senior Fuel Analyst
11 Date Report Completed May 14, 1996
<CAPTION>
Purchases Coal Mines Only Source Data
--------- -------------------------- -------------------------------------------------------
Quality as Received
Cont Fuel Coal State County Originating Quantity ------------------- Purch Price
Type Expir Type Type Dist Abbr No Location Received BTU Sulfur Ash Cents/MMBT
(1) (2) (3) (4)
---- ----- ---- ---- ---- ----- ------ ----------- -------- --- ------ ---- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12 C 12/96 BIT S 45 IMP 999 EL CERREJON 36.7 12087 0.57 5.88 147.24
<FN>
(1) Coal = 1,000 tons (2) Coal per lb (3) and (4) Percent
Oil = 1,000 bbls Oil per gal
Gas = 1,000 Mcf Gas per cu ft
</FN>
</TABLE>
