<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 1995:
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 9/30/95 900,098 64,656,780 10,776,131 11,676,229
Additions & Revisions
through 12/31/95 133,582 1,482,048 247,008 380,590
--------- ---------- ---------- ----------
Balance 1,033,680 66,138,828 11,023,139 12,056,819
Production 4th Qtr.1995 (72,005) (3,604,952) (600,825) (672,830)
--------- ---------- ---------- ----------
Balance 12/31/95 961,675 62,533,876 10,422,314 11,383,989
</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
Quarter 1/1/95 1995 - 1998
---------- ---------- -----------------
Samedan $1,180,983 $5,416,878 $30,000,000 (A)
(A) Authorized through December 31, 1998, by Order dated
December 20, 1994 (Release No. 35-26197; 70-7055).
<PAGE>
-3-
<TABLE>
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.
<CAPTION>
Quarter Year Inception
Ended Ended Thru
12/31/95 12/31/95 12/31/95
-------- --------- ---------
<S> <C> <C> <C>
2. Sales to nonaffiliates
(Exhibit c.):
Equivalent barrels of fuel
produced 672,830 3,046,920 48,349,894
Average price per barrel $ 9.19 $ 9.68 $ 14.04
----------- ------------ --------------
Sales revenues $ 6,179,994 $ 29,502,623 $ 678,923,829
3. Loss to NEP9,100,453 43,731,259 328,831,515
4. Flow through of excess deferred 934,418 4,120,918 81,423,929
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 $16,214,865 $ 77,354,800 $1,125,216,839
----------- ------------ --------------
New Program: None.
f. Credits applied to
New England Power Company (NEP):
1. Disposition of proceeds:
Amortization of cost of
fuel reserves $14,246,444 $ 68,708,044 $1,032,776,944
Production costs 1,275,688 5,151,823 78,009,472
State taxes 692,733 3,494,933 8,952,675
Savings to NEP - - 8,701,242
Royalty to NEP - - 1,099,807
Other - - 65,472
----------- ------------ --------------
Total $16,214,865 $ 77,354,800 $1,129,605,612
----------- ------------ --------------
Net income/(loss)/retained $ - $ - $ (4,388,773)
deficit ----------- ------------ --------------
</TABLE>
<PAGE>
-4-
<TABLE>
f. continued
<CAPTION>
Quarter Year Inception
Ended Ended Thru
12/31/95 12/31/95 12/31/95
-------- --------- ---------
<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 $ 34,630,806 $ 39,793,816 $ -
------------ ------------ ------------
Losses accrued 9,100,453 43,731,259 328,831,515
Losses passed on to NEP** - (39,793,816) (285,100,256)
------------ ------------ ------------
Ending balance in account $ 43,731,259 $ 43,731,259 $ 43,731,259
------------ ------------ ------------
* 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, 1995 (net)
Subordinated notes 3,459,843 15,743,491 1 -
Common stock and premium 250,000 - -
----------- ----------- ------------
Total investment by NEES 3,709,843 15,743,491 -
Investment by NEES-during the
quarter (net)
Subordinated notes 1,022,401 - -
Total investment by NEES through
December 31, 1995 (net)
Subordinated notes 4,482,244 15,743,491 -
Common stock and premium 250,000 - -
----------- ----------- ------------
$ 4,732,244 $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 10/13/95 $ 630,922 $ - $ -
ended December 31, 1995 12/13/95 383,063
12/15/95 750,000
12/29/95 8,416
Payments of
subordinated notes to NEES
during quarter ended
December 31, 1995 12/29/95 $ (750,000)
---------- ------- -------
Net change in investment $1,022,401 $ - $ -
---------- ------- -------
_______________
(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, 1995, (unaudited,
subject to adjustment)
Exhibit h-2 Statement of Income and Retained Deficit of NEEI for the
periods ended December 31, 1995 (unaudited, subject to adjustment)
Exhibit h-3 Statement of Cash Flows of NEEI for the periods ended
December 31, 1995 (unaudited, subject to adjustment)
Exhibit h-4 Computation of Bank Interest for the quarter ended
December 31, 1995
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) -
Average net price (per equiv. bbl) $ -
-------------
Cost to NEEI $ -
Loss from NEEI fuel
exploration activities -
-------------
Cost to NEP -
Adjustments, inspection charges, etc. -
------------- -----------
Total $ -
===========
j. Copies of filings on Form 429 related to the above sales are attached.
(See Exhibits j-1 through j-6.)
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, 1995 through December 31, 1995, 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
-------- -------- ----------- ------------------
Booker Ochiltree County, TX
Born Well #1-119 7/1/95* 984
Spicer Wells #1-5 7/1/95* 775
Banner Canadian County, OK
McDonald Well #1-12 11/1/95 0
------
1,759
======
* Reported by Samedan in the fourth quarter of 1995.
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 0 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 low oil and gas 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.
<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, 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 prospect Filed herewith
(Old Program)
c Production and net revenue (Old Filed herewith
Program)
h-1 Balance Sheet at December 31, 1995 Filed herewith
(Unaudited, Subject to Adjustment)
h-2 Statement of Income and Retained Filed herewith
Deficit for the Periods Ended
December 31, 1995 (Unaudited,
Subject to Adjustment)
h-3 Statement of Cash Flows for the Periods Filed herewith
Ended December 31, 1995 (Unaudited,
Subject to Adjustment)
h-4 Computation of Bank Interest for the Filed herewith
Quarter Ended December 31, 1995
i Fuel Purchased for NEP for the Quarter Filed herewith
Ended December 31, 1995
j-1 Monthly Report of Cost and Quality Filed herewith
of Fuels for Electric Plants
October 1995 (Brayton Point)
j-2 Monthly Report of Cost and Quality Filed herewith
of Fuels for Electric Plants
October 1995 (Salem Harbor)
j-3 Monthly Report of Cost and Quality Filed herewith
of Fuels for Electric Plants
November 1995 (Brayton Point)
j-4 Monthly Report of Cost and Quality Filed herewith
of Fuels for Electric Plants
November 1995 (Salem Harbor)
j-5 Monthly Report of Cost and Quality Filed herewith
of Fuels for Electric Plants
December 1995 (Brayton Point)
j-6 Monthly Report of Cost and Quality Filed herewith
of Fuels for Electric Plants
December 1995 (Salem Harbor)
<PAGE>
<TABLE>
Exhibit a
NEW ENGLAND ENERGY INCORPORATED
INVESTMENT IN PARTNERSHIPS BY PROSPECT - OLD PROGRAM
DECEMBER 31, 1995
<CAPTION>
ESTIMATED TOTAL COST
---------------------------------------------------
Samedan Prospect Name Exploration Development* Total
- ------- ------------- ----------- ------------ ---------
<S> <C> <C> <C> <C>
62583 Brazo 50-54/37&8/65-7 17,314,752.43 49,033,273.38 66,348,025.81
62436 Eugene Island 247/8/9 5,266,657.06 23,376,143.56 28,642,800.62
61402 Northeast Chevron 2,564,439.34 23,294,434.19 25,858,873.53
62493 Eugene Island Blk 208 1,581,077.04 18,841,421.00 20,422,498.04
62559 West Delta 18/33 8,370,144.68 10,919,705.93 19,289,850.61
62479 Main Pass 90/93+4/102+5 3,853,792.84 14,655,669.24 18,509,462.08
62367 Hl 21/22/22L/34/50/51 3,950,000.92 14,225,813.51 18,175,814.43
61998 High Island A365/A376 0.00 12,031,850.91 12,031,850.91
62282 West Cameron b131/132 4,678,480.72 7,182,957.68 11,861,438.40
62289 Main Pass 107/108 1,447,643.02 8,016,544.23 9,464,187.25
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 313,031.00 5,303,312.16 5,616,343.16
62554 Eugene Island 28 1,739,766.29 3,779,587.50 5,519,353.79
62366 Brazos 400.12.13.435 1,778,642.70 3,598,632.58 5,377,275.28
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
42017 Kildare Smackover T 975,610.29 2,596,207.24 3,571,817.53
53330 Derrick Draw/ PDR RIV 2,245,902.09 1,322,105.55 3,568,007.64
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 433/457 333,045.85 2,246,051.71 2,579,097.56
62284 Vermilion Blk 167 924,493.21 1,513,546.36 2,438,039.57
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 405,558.73 1,717,545.11 2,123,103.84
42004 Provident City/Speaks 0.00 2,041,621.10 2,041,621.10
Other 15,756,588.89 23,054,869.38 38,811,458.27
-------------- -------------- --------------
Total Productive Samedan 91,169,130.87 254,878,873.44 346,048,004.31
-------------- -------------- --------------
Dry Holes
Samedan (including depleted wells) 397,875,855.18 397,875,855.18
Work in Process
Samedan 4,053,411.02 4,053,411.02
Dorchester (terminated investment) 67,401,440.17 67,401,440.17
-------------- -------------- --------------
Grand Total 560,499,837.24 254,878,873.44 815,378,710.68
============== ============== ==============
*Includes Lease Acquisition
</TABLE>
<PAGE>
<TABLE>
Exhibit c-1
NEW ENGLAND ENERGY INCORPORATED
PRODUCTION AND NET REVENUE - OLD PROGRAM
FOR THE QUARTER ENDED DECEMBER 31, 1995
<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 4,079.54 1,209,270.90 70,342.481,785,965.84 1,856,308.32
62367 HI 21/22/22L/34/50/51 275.84 648,000.00 4,209.06 987,520.12 991,729.18
62479 Main Pass 90/93+4/102+5 0.00 364,239.66 0.00 556,745.76 556,745.76
61998 High Island A365/A376 10,229.50 104,598.00 166,856.65 141,194.24 308,050.89
62289 Mian Pass 107/108 3,865.83 189,273.96 64,872.40 179,802.58 244,674.98
62366 Brazos 400.12.13.435 512.74 154,144.98 8,147.08 210,159.54 218,306.62
62365 Matagora Island B586/87 72.31 160,761.00 1,149.25 209,873.82 211,023.07
53330 Derrick Draw/PDR RIV 13,149.94 1,506.00 208,988.78 674.36 209,663.14
61898 Eugene Island B24&27 1,352.50 119,179.98 20,671.54 160,092.00 180,763.54
62288 West Cameron Blk 290 506.49 122,515.98 7,711.77 155,699.90 163,411.67
62493 Eugene Island Blk 208 8,929.70 4,405.98 145,163.22 7,329.67 152,492.89
42017 Kildare Smackover T 8,407.20 9,739.08 134,017.01 12,369.36 146,386.37
62554 Eugene Island 28 1,253.35 95,586.00 19,381.83 126,888.60 146,270.43
62582 Brazos 476/491/449 81.62 81,822.00 1,377.91 113,210.68 114,588.59
62284 Vermilion Blk 167 5,461.71 6,987.00 92,598.42 11,299.29 103,897.71
62331 West Delta 27/28/48 4,119.63 7,608.00 63,969.62 12,034.89 76,004.51
Other 9,707.73 325,313.52 153,930.23 345,745.73 499,675.96
--------- ------------------------ ------------ ------------
Totals 72,005.63 3,604,952.04 1,163,387.255,016,606.38 6,179,993.63
========= ======================== ============ ============
</TABLE>
<PAGE>
<TABLE>
Exhibit c-2
NEW ENGLAND ENERGY INCORPORATED
PRODUCTION AND NET REVENUE - OLD PROGRAM
FOR THE YEAR ENDED DECEMBER 31, 1995
<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 18,942.00 5,981,685.78 333,987.789,089,419.68 9,423,407.46
62479 Mian Pass 90/93+4/102+5 395.83 2,061,539.64 5,743.473,317,289.55 3,323,033.02
62367 HI 21/22/22L/34/50/51 2,508.11 1,609,391.94 41,102.622,539,944.45 2,581,047.07
62289 Mian Pass 107/108 17,232.32 1,153,334.88 293,525.531,249,105.94 1,542,631.47
61998 High Island A365/A376 41,591.18 356,262.06 702,477.70 511,041.59 1,213,519.29
62554 Eugene Isalnd 28 15,744.43 535,266.00 255,924.07 790,791.38 1,046,715.45
62366 Brazos 400.12.13.435 2,532.39 699,398.82 38,934.421,005,927.27 1,044,861.69
62365 Matagorda Is B 586/87 370.12 731,686.02 6,021.68 950,991.88 957,013.56
53330 Derrick Draw/ PDR RIV 57,638.69 11,831.82 903,804.58 6,626.38 910,430.96
61898 Eugene Island B 24&27 14,791.80 433,777.02 240,577.11 668,962.52 909,539.63
62288 West Cameron Blk 290 1,728.81 482,209.98 27,194.67 704,209.69 731,404.36
62493 Eugene Isalnd Blk 208 38,883.14 16,257.00 651,710.06 26,968.75 678,678.81
42017 Kildare Smackover T 35,687.15 37,558.08 582,923.88 50,662.84 633,586.72
62322 West Cameron Block 67 39.76 17,047.08 652.36 556,697.41 557,349.77
62582 Brazos 476/491/449 493.51 357,721.02 8,624.12 497,498.76 506,122.88
62284 Vermilion Blk 167 23,494.14 34,037.94 408,579.86 58,346.27 466,926.13
62436 Eugene Island 247/8/9 5.13 275,868.96 83.60 442,088.60 442,172.20
62331 West Delta 27/28/48 23,652.65 18,626.04 378,768.44 27,496.10 406,264.54
62468 Vermilion 114/109 688.32 183,999.12 9,131.88 182,048.61 191,180.49
62282 West Cameron B131/132 220.94 92,373.06 3,709.08 144,722.53 148,431.61
Other 42,587.87 1,156,277.40 688,552.671,099,752.81 1,788,305.48
---------- ---------------------------------------------------
Totals 339,228.29 16,246,149.66 5,582,029.58 23,920,593.01 29,502,622.59
========== ===================================================
</TABLE>
<PAGE>
<TABLE>
Exhibit h-1
NEW ENGLAND ENERGY INCORPORATED
Balance Sheet
December 31, 1995
(Unaudited, Subject to Adjustment)
<CAPTION>
ASSETS
- ------
Old Program New Program Combined
----------- ----------- --------
<S> <C> <C> <C>
Current assets:
Cash, including temporary cash investments
of $1,100,000 with affiliated companies $ 1,111,190$ 21,938 $ 1,133,128
Accounts receivable:
Affiliated companies:
- accrued loss to be passed
on to affiliate 43,731,259 - 43,731,259
- from sales of oil 7,825 - 7,825
- other 80,077 410 80,487
Prepaid expenses 342,312 - 342,312
-------------- ------------ --------------
Total current assets 45,272,663 22,348 45,295,011
-------------- ------------ --------------
Property at cost:
Cost of fuel reserves:
Exploration and development costs:
Samedan 743,923,859 - 743,923,859
Dorchester 67,401,440 - 67,401,440
Cost of capital 443,864,191 - 443,864,191
Other 34,282,715 - 34,282,715
-------------- ------------ --------------
1,289,472,205 - 1,289,472,205
Less-accumulated amortization (1,032,776,944) -(1,032,776,944)
-------------- ------------ --------------
Net cost of fuel reserves 256,695,261 - 256,695,261
Work in process - Samedan 4,053,411 - 4,053,411
-------------- ------------ --------------
Total property 260,748,672 - 260,748,672
-------------- ------------ --------------
$ 306,021,335 $ 22,348 $ 306,043,683
============== ============ ==============
LIABILITIES AND PARENT COMPANY'S INVESTMENT
- -------------------------------------------
Current liabilities:
Accrued exploration and development costs $ 27,235,429 $ - $ 27,235,429*
Accounts payable 1,837,757 249,943 2,087,700
Accrued interest 760,256 - 760,256
Accrued taxes 1,556,300 (178,854) 1,377,446
-------------- ------------ --------------
Total current liabilities 31,389,742 71,089 31,460,831
-------------- ------------ --------------
Deferred income taxes 91,705,859 (42,800) 91,663,059
-------------- ------------ --------------
Deferred credit 3,746,500 - 3,746,500
-------------- ------------ --------------
Notes payable to banks under credit agreement 182,000,000 - 182,000,000
-------------- ------------ --------------
Parent company's investment:
Subordinated notes payable to parent 4,482,24415,743,491 20,225,735
Common stock, par value $1 per share 2,500 - 2,500
Paid-in capital 247,500 - 247,500
Retained deficit (7,553,010) (15,749,432) (23,302,442)
-------------- ------------ --------------
Total parent company's investment (2,820,766) (5,941) (2,826,707)
-------------- ------------ --------------
$ 306,021,335 $ 22,348 $ 306,043,683
============== ============ ==============
*Accrued exploration and development costs:
Total
(All Samedan)
-------------
Exploration $10,307,482
Development 17,599,165
Work in process 25,749
Advance (696,967)
-----------
$27,235,429
===========
</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, 1995
(Unaudited, Subject to Adjustment)
<CAPTION>
Old Program New Program Combined
----------- ----------- --------
<S> <C> <C> <C>
Operating revenue:
Sales of fuel to an affiliate $ -$ -$ -
Loss passed on to an affiliate - - -
Accrued loss to be passed on to an affiliate9,100,453 - 9,100,453
Sales to nonaffiliates:
Oil 1,163,387 123 1,163,510
Gas 5,016,607 2,507 5,019,114
------------------------------------
Total operating revenue 15,280,447 2,630 15,283,077
------------------------------------
Operating expenses:
Purchases of fuel for an affiliate - - -
Amortization of cost of fuel reserves 14,246,444 - 14,246,444
Production costs 1,275,688 8,436 1,284,124
------------------------------------
Total operating expenses 15,522,132 8,436 15,530,568
------------------------------------
Operating income/(loss) (241,685) (5,806) (247,491)
Other income/(expense):
Interest income - 106 106
Interest expense (590,449) - (590,449)
State taxes (656,233) 12,000 (644,233)
------------------------------------
Operating and other income/(loss) (1,488,367) 6,300 (1,482,067)
------------------------------------
Federal income taxes:
Current federal income taxes (708,853) (103,954) (812,807)
Deferred federal income taxes (419,515) 8,100 (411,415)
------------------------------------
Net federal income taxes (1,128,368) (95,854) (1,224,222)
------------------------------------
Net income (359,999) 102,154 (257,845)
Retained deficit at beginning of period (7,193,011)(15,851,586)(23,044,597)
------------------------------------
Retained deficit at end of period $ (7,553,010) $(15,749,432) $(23,302,442)
============ ============ ============
</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, 1995
(Unaudited, Subject to Adjustment)
<CAPTION>
Old Program New Program Combined
----------- ----------- --------
<S> <C> <C> <C>
Operating revenue:
Sales of fuel to an affiliate $ 63,132,685$ -$ 63,132,685
Loss passed on to an affiliate (39,793,816) - (39,793,816)
Accrued loss to be passed on to an affiliate 43,731,259 - 43,731,259
Sales to nonaffiliates:
Oil 5,582,030 644 5,582,674
Gas 23,920,593 20,391 23,940,984
------------------------------------
Total operating revenue 96,572,751 21,035 96,593,786
------------------------------------
Operating expenses:
Purchases of fuel for an affiliate 23,338,869 - 23,338,869
Amortization of cost of fuel reserves 68,708,044 - 68,708,044
Production costs 5,151,823 11,832 5,163,655
General and Administrative Costs 228,883 - 228,883
------------------------------------
Total operating expenses 97,427,619 11,832 97,439,451
------------------------------------
Operating income/(loss) (854,868) 9,203 (845,665)
Other income/(expense):
Interest income - 2,042 2,042
Interest expense (2,478,329) - (2,478,329)
State taxes (3,397,433) 12,000 (3,385,433)
------------------------------------
Operating and other income/(loss) (6,730,630) 23,245 (6,707,385)
------------------------------------
Federal income taxes:
Current federal income taxes 12,354,547 (98,154) 12,256,393
Deferred federal income taxes (17,388,915) 8,100 (17,380,815)
------------------------------------
Net federal income taxes (5,034,368) (90,054) (5,124,422)
------------------------------------
Net income (1,696,262) 113,299 (1,582,963)
Retained deficit at beginning of period (5,856,748)(15,862,731)(21,719,479)
------------------------------------
Retained deficit at end of period $ (7,553,010) $(15,749,432) $(23,302,442)
============ ============ ============
</TABLE>
<PAGE>
<TABLE>
Exhibit h-3
Page 1 of 2
NEW ENGLAND ENERGY INCORPORATED
Statements of Cash Flows
For the Quarter Ended December 31, 1995
(Unaudited, Subject to Adjustment)
<CAPTION>
Old Program New Program Combined
----------- ----------- --------
<S> <C> <C> <C>
Operating Activities:
Net income $ (359,999)$ 102,154$ (257,845)
Adjustments to reconcile net income to
net cash provided by operating activities:
Amortization of cost of fuel reserves 14,246,444 - 14,246,444
Loss passed on to an affiliate - - -
Accrued loss to be passed on to an affiliate (9,100,453) -(9,100,453)
Deferred income taxes 534,385 8,100 542,485
(Increase)/decrease in accounts receivable
(excluding loss to be passed on to affiliate) (69,131) 203 (68,928)
Increase/(decrease) in accrued exploration
and development costs (1,370,242) - (1,370,242)
Increase/(decrease) in accounts payable 69,197 (9,207) 59,990
Increase/(decrease) in accrued interest payable (419,002) -(419,002)
Increase/(decrease) in accrued taxes (3,547,267) (99,754) (3,647,021)
------------ ---------------------
Net cash provided by operating activities $ (16,068) $ 1,496$ (14,572)
------------ ---------------------
Investing Activities:
Investment in property - Samedan:
Exploration (also includes dry holes, depleted
wells and work in process) $ 4,052,099 $ -$ 4,052,099
Development (also reflects transfer of
depleted wells) (5,233,083) - (5,233,083)
Capital costs (2,060,031) - (2,060,031)
Other (752,118) - (752,118)
------------ ---------------------
Net cash used in investing activities $ (3,993,133)$ -$ (3,993,133)
------------ ---------------------
Financing Activities:
Subordinated notes payable to parent-issues $ 1,772,401 $ -$ 1,772,401
Subordinated notes payable to parent-retirements (750,000) -(750,000)
Changes in notes payable to bank under
credit agreement 2,000,000 - 2,000,000
------------ ---------------------
Net cash used in financing activities $ 3,022,401 $ -$ 3,022,401
------------ ---------------------
Net increase/(decrease) in cash and cash equivalents $ (986,800) $ 1,496$ (985,304)
Cash and cash equivalents at beginning of period2,097,990 20,442 2,118,432
------------ ---------------------
Cash and cash equivalents at end of period $ 1,111,190 $ 21,938$ 1,133,128
------------ ---------------------
</TABLE>
<PAGE>
<TABLE>
Exhibit h-3
Page 2 of 2
NEW ENGLAND ENERGY INCORPORATED
Statements of Cash Flows
For the Year Ended December 31, 1995
(Unaudited, Subject to Adjustment)
<CAPTION>
Old Program New Program Combined
----------- ----------- --------
<S> <C> <C> <C>
Operating Activities:
Net income $ (1,696,262)$ 113,299$ (1,582,963)
Adjustments to reconcile net income to
net cash provided by operating activities:
Amortization of cost of fuel reserves 68,708,044 - 68,708,044
Loss passed on to an affiliate 39,793,816 - 39,793,816
Accrued loss to be passed on to an affiliate (43,731,259) -(43,731,259)
Deferred income taxes (15,432,715) 8,100 (15,424,615)
(Increase)/decrease in accounts receivable
(excluding loss to be passed on to affiliate) (55,169) (150) (55,319)
Increase/(decrease) in accrued exploration
and development costs 954,086 - 954,086
Increase/(decrease) in accounts payable (274,238) (99,871) (374,109)
Increase/(decrease) in accrued interest payable (30,515) - (30,515)
Increase/(decrease) in accrued taxes payable 2,644,839 (199,754) 2,445,085
------------ ---------------------
Net cash provided by operating activities $ 50,880,627 $(178,376)$ 50,702,251
------------ ---------------------
Investing Activities:
Investment in property - Samedan:
Exploration (also includes dry holes, depleted
wells and work in process) $ 1,522,302 $ -$ 1,522,302
Development (also reflects transfer of
depleted wells) (8,076,088) - (8,076,088)
Capital costs (9,625,928) - (9,625,928)
Other (2,722,565) - (2,722,565)
------------ ---------------------
Net cash used in investing activities $(18,902,279)$ -$(18,902,279)
------------ ---------------------
Financing Activities:
Subordinated notes payable to parent-issues $ 3,531,364 $ 145,800 $ 3,677,164
Subordinated notes payable to parent-retirements (1,750,000) - (1,750,000)
Changes in notes payable to bank under
credit agreement (34,000,000) - (34,000,000)
------------ ---------------------
Net cash used in financing activities $(32,218,636)$ 145,800$(32,072,836)
------------ ---------------------
Net increase/(decrease) in cash and cash equivalents $ (240,088) $ (32,576)$ (272,644)
Cash and cash equivalents at beginning of period1,351,478 54,514 1,405,992
------------ ---------------------
Cash and cash equivalents at end of period $ 1,111,190 $ 21,938$ 1,133,128
------------ ---------------------
</TABLE>
<PAGE>
<TABLE>
Exhibit h-4
NEW ENGLAND ENERGY INCORPORATED
Computation of Bank Interest
Quarter Ended December 31, 1995
--------------------------------
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
-----------
$ 37,000,000 04/13/95 10/13/95 6.6725 $ 82,294.17
54,000,000 09/13/95 12/13/95 6.1100 669,045.00
30,000,000 08/15/95 11/15/95 6.0900 228,375.00
12,000,000 08/15/95 11/15/95 6.0300 90,450.00
19,000,000 08/15/95 11/15/95 6.1100 145,112.50
28,000,000 09/29/95 12/29/95 6.1100 422,947.78
37,000,000 10/13/95 12/13/95 6.1100 383,063.06
12,000,000 11/15/95 01/16/96 6.1250 95,958.33
49,000,000 11/15/95 01/16/96 6.1725 394,868.54
54,000,000 12/13/95 02/13/96 6.1100 174,135.00
37,000,000 12/13/95 02/13/96 5.9225 115,653.26
30,000,000 12/29/95 01/29/96 5.9850 14,962.50
---------------
2,816,865.14
Interest Rate Swap (215,704.02)
Fees (Primarily facility) 49,126.46
---------------
Total Old Program $2,650,287.58
---------------
</TABLE>
<PAGE>
Exhibit i
NEW ENGLAND ENERGY INCORPORATED
Fuel Purchased for NEP
for the Quarter Ended December 31, 1995
-----------------------------------------
No fuel purchased for NEP during the quarter.
<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 10/95
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 December 13, 1995
<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 S 12/95 BIT U 45 999 999 CDC LAJAGUA 27.7 12356 0.57 4.44 153.09
13 C 02/96 BIT U 50 IM 999 NORTE DE SANTAN 26.3 12505 0.72 7.64 152.55
<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 10/95
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 Decenber 13, 1995
<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 36.5 13084 0.60 5.74 147.18
<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 11/95
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 January 11, 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 36.7 12941 0.72 6.03 147.77
13 C 02/96 BIT U 50 IM 999 NORTE DE SANTAN 28.2 13388 0.73 6.74 153.06
<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 11/95
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 January 11, 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 S 12/95 BIT S 45 999 999 CDC LAJAGUA 41.1 12357 0.60 4.72 152.80
13 C 12/95 BIT S 50 IM 999 DIABLO PASO 50.4 12591 0.64 7.02 146.43
<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 12/95
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 02/09/96
<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 S 01/96 BIT S 45 999 999 CDC LAJAGUA 64.8 12229 0.58 4.72 162.81
13 S 01/96 BIT S 45 999 999 CERREJON CNTRL 19.3 12150 0.70 5.02 171.49
14 C 06/98 BIT S 8 WV 045 DALTEX 47.3 12313 0.74 11.51 166.57
15 C 12/95 BIT S 50 IM 999 DIABLO PASO 36.0 12850 0.72 5.89 148.27
16 S 01/96 BIT U 50 IM 999 NORTE DE SANTAN 91.9 12673 0.73 7.78 161.52
17 C 02/96 BIT U 08 KY 195 WHITES CLOUD 3.5 12712 0.70 6.28 145.56
<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 12/95
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 02/09/96
<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 S 01/96 BIT S 45 999 999 CERREJON CNTRL 44.3 12150 0.70 5.02 172.19
<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>
