<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 1997:
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 1/1/97 809,090 46,636,222 7,772,703 8,581,793
Additions & Revisions
through 3/31/97 - - - -
--------- ----------- ---------- ----------
Balance 809,090 46,636,222 7,772,703 8,581,793
Production 1st Qtr. 1997 (68,326) (4,120,834) (686,806) (755,132)
--------- ----------- ---------- ----------
Balance 3/31/97 740,764 42,515,388 7,085,897 7,826,661
--------- ----------- ---------- ----------
</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 0 752
Dorchester 0 51
-- -----
0 803
-- -----
No. of productive wells
Samedan 4 1,238*
Dorchester 0 69*
-- ------
4 1,307*
-- ------
No. of wells drilled 4 2,110
(both exploration and development) -- -----
* Includes depleted/sold wells as follows:
Samedan 26 539
Dorchester 0 69
-- -----
26 608
-- -----
New Program
-----------
None.
INVESTMENT
----------
Budget Authorized
Actual By SEC
--------------------------------- -----------------
Since Since
Quarter 1/1/97 1/1/95 1995 - 1998
--------- --------- ---------- -----------------
Samedan $749,867 $749,867$19,769,722 $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
3/31/97 3/31/97
------- ---------
<S> <C> <C>
2. Sales to nonaffiliates
(Exhibit c.):
Equivalent barrels of fuel
produced 755,132 51,531,161
Average price per barrel $ 19.75 $ 14.11
----------- ------------
Sales revenues $14,912,353 $727,230,914
3. Loss to NEP 6,590,938 354,188,997
4. Flow through of excess deferred 968,340 84,567,446
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 $22,471,631 $1,202,024,923
----------- --------------
New Program: None.
f. Credits applied to
New England Power Company (NEP):
1. Disposition of proceeds:
Amortization of cost of
fuel reserves $20,435,697 $1,099,474,048
Production costs 1,253,834 83,691,282
State taxes 782,100 12,181,926
Savings to NEP - 8,701,242
Royalty to NEP - 1,099,807
Other - 1,265,391
----------- --------------
Total $22,471,631 $1,206,413,696
----------- --------------
Net income/(loss)/retained $ - $ (4,388,773)
deficit ----------- --------------
</TABLE>
<PAGE>
-4-
<TABLE>
f. continued
<CAPTION>
Quarter Inception
Ended Thru
3/31/97 3/31/97
-------- ---------
<S> <C> <C>
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 $ 18,766,544$ -
------------------------
Losses accrued 6,590,938 354,188,996
Losses passed on to NEP** (9,334,557) (338,166,071)
------------------------
Ending balance in account $ 16,022,925$ 16,022,925
------------------------
</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, 1996 (net)
Subordinated notes 5,253,380 15,743,491 1 -
Common stock and premium 250,000 - -
----------- ----------- ------------
Total investment by NEES 5,503,380 15,743,491 -
Investment by NEES-during the
quarter (net)
Subordinated notes 570,956 - -
Total investment by NEES through
March 31, 1997 (net)
Subordinated notes 5,824,336 15,743,491 -
Common stock and premium 250,000 - -
----------- ----------- ------------
$ 6,074,336 $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 3/13/97$ 570,956 $ - $ -
ended March 31, 1997
Payments of
subordinated notes to NEES
during quarter ended
March 31, 1997 $ - $ - $ -
------------ ------- -------
Net change in investment $ 570,956 $ - $ -
------------ ------- -------
_______________
(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, 1997, (unaudited, subject
to adjustment)
Exhibit h-2 Statement of Income and Retained Deficit of NEEI for the
quarter ended March 31, 1997 (unaudited, subject to adjustment)
Exhibit h-3 Statement of Cash Flows of NEEI for the quarter ended
March 31, 1997 (unaudited, subject to adjustment)
Exhibit h-4 Computation of Bank Interest for the quarter ended
March 31, 1997
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) 981,581.76
Average net price (per equiv. bbl) $ 6.38
-------------
Cost to NEEI $ 6,261,352
Loss from NEEI fuel
exploration activities 9,334,557
-------------
Cost to NEP 15,595,909
Adjustments, inspection charges, etc. -
------------- -----------
Total $15,595,909
===========
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, 1997 through March 31, 1997, 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>
County Line Canadian County, OK
Bohlman Well #1 12/31/96* 0
Banner Canadian County, OK
Bonebrake Well #1 12/31/96* 0
Donna J Well #1-19 12/31/96* 0
Donna J Well #1 12/31/96* 0
Everet Unit 12/31/96* 0
Harman Well #1-4 12/31/96* 0
Lorenzen well #1-18 12/31/96* 0
Mason Wells 12/31/96* 0
Meschberger Well #21-1 12/31/96* 0
Milam Wells #1-18,2-18,3-18,4-18 12/31/96* 0
Reding Well #20-1 12/31/96* 0
Warr Well #1 12/31/96* 0
Criner McClain County, OK
Donal Well #1-19 12/31/96* 0
Richland Canadian County, OK
Maier Well #1 12/31/96* 0
Clinton Custer County, OK
Haggard Well #2-11 12/31/96* 0
Provident City Lavaca County, TX
Bing Well #1 11/01/96* 1,658
Cullen Estate Well #1 11/01/96* 416
Cullen Estate Well #2A 11/01/96* 89
Simpson Well #1 11/01/96* 8,523
Mitchell E Well #5 11/01/96* 2,251
Mitchell E Well #1 11/01/96* 0
South Carlsbad Eddy County, NM
Carlsbad State Well #1 11/01/96* 0
East Bitter Lake Chaves County, NM
Yates 36 State Well #1 11/01/96* 0
Continental Freestone County, TX
M. Levels Well #1 11/01/96* 0
Beaverton Lamar County, AL
J.F. Holley Well #1 11/01/96* 0
Lost Bridge Dunn County, ND
Lost Bridge State Well #1-16 01/01/97* 979
------
13,916
======
* 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
<PAGE>
-8-
total 13,916 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 1995 totalling $328,553,783 which were passed on to NEP in 1988
through 1995. NEEI's Old Program loss of $18,766,544, incurred in 1996, is
being passed on to NEP in 1997.
<PAGE>
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, 1997
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, 1997 Filed herewith
(Unaudited, Subject to Adjustment)
h-2 Statement of Income and Retained Filed herewith
Deficit for the Quarter Ended
March 31, 1997 (Unaudited,
Subject to Adjustment)
h-3 Statement of Cash Flows for the Filed herewith
Quarter Ended March 31, 1997
(Unaudited, Subject to Adjustment)
h-4 Computation of Bank Interest for the Filed herewith
Quarter Ended March 31, 1997
i Fuel Purchased for NEP for the Filed herewith
Quarter Ended March 31, 1997
j-1 Monthly Report of Cost and Quality Filed herewith
of Fuels for Electric Plants
January 1997 (Brayton Point)
j-2 Monthly Report of Cost and Quality Filed herewith
of Fuels for Electric Plants
January 1997 (Salem Harbor)
j-3 Monthly Report of Cost and Quality Filed herewith
of Fuels for Electric Plants
February 1997 (Brayton Point)
j-4 Monthly Report of Cost and Quality Filed herewith
of Fuels for Electric Plants
February 1997 (Salem Harbor)
j-5 Monthly Report of Cost and Quality Filed herewith
of Fuels for Electric Plants
March 1997 (Brayton Point)
j-6 Monthly Report of Cost and Quality Filed herewith
of Fuels for Electric Plants
March 1997 (Salem Harbor)
<PAGE>
<TABLE>
Exhibit a
NEW ENGLAND ENERGY INCORPORATED
INVESTMENT IN PARTNERSHIPS BY PROSPECT - OLD PROGRAM
MARCH 31, 1997
<CAPTION>
ESTIMATED TOTAL COST
---------------------------------------------------
Samedan Prospect Name Exploration Development* Total
- ------- ------------- ----------- ------------ ---------
<S> <C> <C> <C> <C>
62583 Brazo 50-54/37&8/65-7 17,348,177.51 48,143,054.29 65,491,231.80
62436 Eugene Island 247/8/9 5,215,869.84 23,645,517.31 28,861,387.15
61402 Northeast Chevron 2,564,516.91 23,016,961.78 25,581,478.69
62493 Eugene Island Blk 208 1,584,198.43 18,159,029.40 19,743,227.83
62479 Main Pass 90/93+4/102+5 3,857,539.09 15,417,878.90 19,275,417.99
62559 West Delta 18/33 8,563,719.40 10,694,253.62 19,257,973.02
62367 Hl 21/22/22L/34/50/51 3,990,233.94 13,469,002.75 17,459,236.69
61998 High Island A365/A376 0.00 11,799,984.33 11,799,984.33
62289 Main Pass 107/108 1,445,886.28 9,911,510.84 11,357,397.12
62468 Vermilion 114/109 1,323,006.83 6,120,333.21 7,443,340.04
61898 Eugene Island B 24&27 2,928,747.83 4,035,162.95 6,963,910.78
62331 West Delta 27/28/48 2,746,928.39 3,656,772.35 6,403,700.74
62282 West Cameron b131/132 0.00 5,638,250.20 5,638,250.20
21494 Banner 273,777.89 5,267,399.98 5,541,177.87
62554 Eugene Island 28 1,739,766.26 3,751,800.95 5,491,567.21
61501 Vermilion 241/261 (EC) 2,221,789.49 3,044,340.46 5,266,129.95
62366 Brazos 400.12.13.435 1,778,642.70 3,366,684.93 5,145,327.63
62365 Matagorda Is B 586/87 2,208,706.08 2,771,585.18 4,980,291.26
61410 High Island B 270/281 562,646.27 3,545,886.54 4,108,532.81
53330 Derrick Draw/ PDR RIV 2,389,085.97 1,251,048.16 3,640,134.13
42017 Kildare Smackover T 975,025.30 2,620,132.18 3,595,157.48
62558 South Timbalier 197 2,307,523.54 490,464.62 2,797,988.16
51673 Williston 0.00 2,634,434.80 2,634,434.80
62377 Vermilion Block 76 945,194.48 1,651,896.37 2,597,090.85
62543 West Cameron 433/457 333,421.78 2,224,373.03 2,557,794.81
62284 Vermilion Blk 167 924,503.21 1,516,755.51 2,441,258.72
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 404,491.11 1,713,576.33 2,118,067.44
42004 Provident City/Speaks 0.00 1,827,014.40 1,827,014.40
Other 14,540,559.12 21,088,460.29 35,629,019.41
-------------- -------------- --------------
Total Productive Samedan 85,589,799.47 254,893,888.33 340,483,687.80
-------------- -------------- --------------
Dry Holes
Samedan (including depleted wells) 408,218,401.81 408,218,401.81
Work in Process
Samedan 566,121.93 566,121.93
Dorchester (terminated investment) 67,401,440.17 67,401,440.17
-------------- -------------- --------------
Grand Total 561,775,763.38 254,893,888.33 816,669,651.71
============== ============== ==============
*Includes Lease Acquisition
</TABLE>
<PAGE>
<TABLE>
Exhibit c
NEW ENGLAND ENERGY INCORPORATED
PRODUCTION AND NET REVENUE - OLD PROGRAM
FOR THE QUARTER ENDED MARCH 31, 1997
<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 3,853.10 1,510,946.00 92,272.475,377,249.215,469,521.68
62367 Hl 21/22/22L/34/50/51 1,257.30 794,531.00 30,387.042,434,504.312,464,891.35
62479 Main Pass 90/93+4/102+5 0.00 526,926.00 0.001,668,651.871,668,651.87
62289 Main Pass 107/108 3,219.10 215,425.00 78,593.76 714,814.47 793,408.23
62365 Matagorda Is B 586/87 66.77 240,853.00 1,549.68 693,355.40 694,905.08
61998 High Island A365/A376 7,791.41 121,121.00 184,777.95 382,195.73 566,973.68
61898 Eugene Island B 24&27 2,783.56 140,182.00 66,713.20 463,189.56 529,902.76
62288 West Cameron Blk 290 437.05 109,256.00 9,680.77 303,232.44 312,913.21
62366 Brazos 400.12.13.435 203.03 76,714.00 4,666.91 257,493.04 262,159.95
62554 Eugene Island 28 2,249.53 62,683.00 54,041.05 189,127.01 243,168.06
62582 Brazos 476/491/449 93.86 72,169.00 2,205.39 235,836.56 238,041.95
53330 Derrick Draw/PDR RIV 10,753.38 1,257.00 226,316.64 812.64 227,129.28
62331 West Delta 27/28/48 7,817.77 5,701.00 180,934.85 18,986.11 199,920.65
61410 High Island B270/281 456.52 60,979.00 11,157.80 175,504.58 186,662.38
42017 Kildare Smackover T 6,708.23 10,836.00 151,715.60 17,965.98 169,681.58
62493 Eugene Island Blk 208 5,547.20 5,524.00 127,911.61 17,512.14 145,423.75
42487 Orcones 1,177.93 33,970.00 25,673.20 85,988.35 111,661.55
Other 13,910.77 131,761.00 318,647.66 308,688.38 627,336.04
--------- -------------- -------------- ------------ ------------
Totals 68,326.51 4,120,834.00 1,567,245.58 13,345,107.78 14,912,353.36
========= ============== ============== ============ ============
</TABLE>
<PAGE>
<TABLE>
Exhibit h-1
NEW ENGLAND ENERGY INCORPORATED
Balance Sheet
March 31, 1997
(Unaudited, Subject to Adjustment)
<CAPTION>
ASSETS
- ------
Old Program New Program Combined
----------- ----------- --------
<S> <C> <C> <C>
Current assets:
Cash, including temporary cash investments
of $9,200,000 with affiliated companies $ 9,329,418 $ (110,313) $ 9,219,105
Accounts receivable:
Affiliated companies:
- accrued loss to be passed
on to affiliate 16,022,925 - 16,022,925
- from sales of oil 5,216,018 - 5,216,018
- tax benefits - 176,154 176,154
- other 81,310 - 81,310
Prepaid expenses 342,312 - 342,312
-------------- ------------ --------------
Total current assets 30,991,983 65,841 31,057,824
-------------- ------------ --------------
Property at cost:
Cost of fuel reserves:
Exploration and development costs:
Samedan 748,702,089 - 748,702,089
Dorchester 67,401,440 - 67,401,440
Cost of capital 452,260,260 - 452,260,260
Other 37,899,992 - 37,899,992
-------------- ------------ --------------
1,306,263,781 - 1,306,263,781
Less-accumulated amortization (1,099,474,048) -(1,099,474,048)
-------------- ------------ --------------
Net cost of fuel reserves 206,789,733 - 206,789,733
Work in process - Samedan 566,122 - 566,122
-------------- ------------ --------------
Total property 207,355,855 - 207,355,855
-------------- ------------ --------------
$ 238,347,838 $ 65,841 $ 238,413,679
============== ============ ==============
LIABILITIES AND PARENT COMPANY'S INVESTMENT
- -------------------------------------------
Current liabilities:
Accrued exploration and development costs $ 18,399,633 $ - $ 18,399,633*
Accounts payable 3,077,197 57,260 3,134,457
Accrued interest 921,739 - 921,739
Accrued taxes payable 11,928,400 - 11,928,400
-------------- ------------ --------------
Total current liabilities 34,326,969 57,260 34,384,229
-------------- ------------ --------------
Deferred income taxes 64,897,466 (42,800) 64,854,666
-------------- ------------ --------------
Deferred credit 2,420,608 - 2,420,608
-------------- ------------ --------------
Notes payable to banks under credit agreement 140,000,000 - 140,000,000
-------------- ------------ --------------
Parent company's investment:
Subordinated notes payable to parent 5,824,33615,743,491 21,567,827
Common stock, par value $1 per share 2,500 - 2,500
Paid-in capital 247,500 - 247,500
Retained deficit (9,371,541) (15,692,110) (25,063,651)
-------------- ------------ --------------
Total parent company's investment (3,297,205) 51,381 (3,245,824)
-------------- ------------ --------------
$ 238,347,838 $ 65,841 $ 238,413,679
============== ============ ==============
*Accrued exploration and development costs:
Total
(All Samedan)
-------------
Exploration $11,758,094
Development 7,261,181
Work in process (1,180,462)
Advance 560,820
-----------
$18,399,633
===========
</TABLE>
<PAGE>
<TABLE>
Exhibit h-2
NEW ENGLAND ENERGY INCORPORATED
Statements of Income and Retained Deficit
For the Quarter Ended March 31, 1997
(Unaudited, Subject to Adjustment)
<CAPTION>
Old Program New Program Combined
----------- ----------- --------
<S> <C> <C> <C>
Operating revenue:
Sales of fuel to an affiliate $ 15,595,909$ -$ 15,595,909
Loss passed on to an affiliate (9,334,557) - (9,334,557)
Accrued loss to be passed on to an affiliate6,590,938 - 6,590,938
Sales to nonaffiliates:
Oil 1,567,245 198 1,567,443
Gas 13,345,108 6,448 13,351,556
------------------------------------
Total operating revenue 27,764,643 6,646 27,771,289
------------------------------------
Operating expenses:
Purchases of fuel for an affiliate 6,261,352 - 6,261,352
Amortization of cost of fuel reserves 20,435,697 - 20,435,697
Production costs 1,253,834 (16,530) 1,237,304
------------------------------------
Total operating expenses 27,950,883 (16,530) 27,934,353
------------------------------------
Operating income/(loss) (186,240) 23,176 (163,064)
Other income/(expense):
Interest income - - -
Interest expense (573,212) - (573,212)
Other expense (20,672) - (20,672)
State taxes (760,500) - (760,500)
------------------------------------
Operating and other income/(loss) (1,540,624) 23,176 (1,517,448)
------------------------------------
Federal income taxes:
Current federal income taxes 9,793,960 8,100 9,802,060
Deferred federal income taxes (10,962,500) - (10,962,500)
------------------------------------
Net federal income taxes (1,168,540) 8,100 (1,160,440)
------------------------------------
Net income (372,084) 15,076 (357,008)
Retained deficit at beginning of period (8,999,457)(15,707,186)(24,706,643)
------------------------------------
Retained deficit at end of period $ (9,371,541) $(15,692,110) $(25,063,651)
============ ============ ============
</TABLE>
<PAGE>
<TABLE>
Exhibit h-3
NEW ENGLAND ENERGY INCORPORATED
Statements of Cash Flows
For the Quarter Ended March 31, 1997
(Unaudited, Subject to Adjustment)
<CAPTION>
Old Program New Program Combined
----------- ----------- --------
<S> <C> <C> <C>
Operating Activities:
Net income $ (372,084) $ 15,076$ (357,008)
Adjustments to reconcile net income to
net cash provided by operating activities:
Amortization of cost of fuel reserves 20,435,697 - 20,435,697
Loss passed on to an affiliate 9,334,557 - 9,334,557
Accrued loss to be passed on to an affiliate (6,590,938) -(6,590,938)
Deferred income taxes (7,698,902) - (7,698,902)
(Increase)/decrease in accounts receivable
(excluding loss to be passed on to affiliate) (5,236,972) 8,100 (5,228,872)
Increase/(decrease) in accrued exploration
and development costs 1,290,946 - 1,290,946
Increase/(decrease) in accounts payable 1,180,066 (1,332) 1,178,734
Increase/(decrease) in accrued interest payable (19,650) -(19,650)
Increase/(decrease) in accrued taxes payable 8,212,600 - 8,212,600
------------ ---------------------
Net cash provided by operating activities $ 20,535,320 $ 21,844 $ 20,557,164
------------ ---------------------
Investing Activities:
Investment in property - Samedan:
Exploration (also includes dry holes, depleted
wells and work in process) $ (443,459)$ -$ (443,459)
Development (also reflects transfer of
depleted wells) (306,407) - (306,407)
Capital costs (1,611,743) - (1,611,743)
Other (746,800) - (746,800)
------------ ---------------------
Net cash used in investing activities $ (3,108,409)$ -$ (3,108,409)
------------ ---------------------
Financing Activities:
Subordinated notes payable to parent-issues $ 570,956 $ - $ 570,956
Subordinated notes payable to parent-retirements - - -
Changes in notes payable to bank under
credit agreement (9,000,000) - (9,000,000)
------------ ---------------------
Net cash used in financing activities $ (8,429,044)$ - $(8,429,044)
------------ ---------------------
Net increase/(decrease) in cash and cash equivalents $ 8,997,867 $ 21,844 $ 9,019,711
Cash and cash equivalents at beginning of period 331,551 (132,157) 199,394
------------ ---------------------
Cash and cash equivalents at end of period $ 9,329,418$ (110,313) $ 9,219,105
------------ ---------------------
</TABLE>
<PAGE>
<TABLE>
Exhibit h-4
NEW ENGLAND ENERGY INCORPORATED
Computation of Bank Interest
Quarter Ended March 31, 1997
-------------------------------
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
-----------
$ 40,000,000 02/13/96 02/13/97 5.2975 $ 253,102.77
37,000,000 09/13/96 03/13/97 6.1725 450,421.04
6,000,000 10/21/96 01/21/97 5.7625 19,208.33
30,000,000 10/21/96 01/21/97 5.7625 96,041.67
11,000,000 11/13/96 01/21/97 5.7350 35,047.22
15,000,000 12/13/96 01/13/97 5.8600 29,300.00
10,000,000 12/30/96 01/30/97 5.9225 47,709.03
16,000,000 01/13/97 02/13/97 5.7350 79,015.56
47,000,000 01/21/97 04/21/97 5.7975 529,827.08
10,000,000 01/30/97 02/28/97 5.6725 45,695.14
23,000,000 02/13/97 03/13/97 5.6725 101,474.73
30,000,000 02/13/97 03/13/97 5.7975 227,068.75
10,000,000 02/28/97 03/27/97 5.6100 42,075.00
16,000,000 03/13/97 06/13/97 5.7975 48,956.67
37,000,000 03/13/97 06/13/97 5.7975 113,212.29
10,000,000 03/27/97 04/28/97 5.9225 8,225.69
--------------
2,126,380.97
Interest Rate Swap 15,857.64
Fees (Primarily facility) 33,138.47
--------------
Total Old Program $2,175,377.08
--------------
</TABLE>
<PAGE>
<TABLE>
Exhibit i
NEW ENGLAND ENERGY INCORPORATED
Fuel Purchased for NEP
for the Quarter Ended March 31, 1997
-----------------------------------------
<CAPTION>
Exploration
- -----------
Date purchased (delivered) Jan. 13, 1997 Jan. 25, 1997 Jan. 29, 1997
------------- ------------- -------------
<S> <C> <C> <C>
Quantity of fuel (eq. bbl) 167,371.29 4,686.29 161,193.35
Average net price (per eq. bbl) $ 6.57$ 6.57$ 6.12
---------- --- ---------- --- --------------
Cost to NEEI $1,099,288.15$ 30,779.39 $ 986,331.17
Loss from NEEI fuel
exploration activities 1,591,652.24 44,565.29 1,532,901.83
------------- ------------- -------------
Cost to NEP $2,690,940.39$ 75,344.68$2,519,233.00
---------- -- --- ------------- -------------
Date purchased (delivered) Jan. 31, 1997 Feb. 10, 1997 Mar.11,1997
------------- ------------- -----------
Quantity of fuel (eq. bbl) 164,703.80 156,317.74 162,880.08
Average net price (per eq. bbl) $ 6.53 $ 6.39 $ 6.15
------------- ---------- --- -------------
Cost to NEEI $1,076,171.43 $ 998,991.80 1,001,000.88
------------- ---------- --- -------------
Loss from NEEI fuel
exploration activities 1,566,285.15 1,486,536.221,548,942.12
------------- ---------- --- -------------
Cost to NEP $2,642,456.58$2,485,528.02 $2,549,943.00
---------- --- ---------- --- -------------
Date purchased (delivered) Mar. 19,1997
------------
Quantity of fuel (eq. bbl) 164,429.20
Average net price (per eq. bbl) $ 6.50
--------------
Cost to NEEI $ 1,068,789.80
--------------
Loss from NEEI fuel
exploration activities $ 1,563,673.80
------------
Cost to NEP $ 2,632,463.60
-------------
</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 1-97
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 Diane M. Healy
10 Title Analyst
11 Date Report Completed March 13,1997
<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 02/97 BIT U 08 WV 059 Ashland 44.6 12985 0.69 8.45 172.63
13 C 12/97 BIT S 45 IMP 999 EL CERREJON 40.9 12100 0.57 5.26 209.08
14 S 04/96 BIT U 08 WV 15 FOLA-CR 10.0 12633 0.65 10.79 181.12
15 C 12/96 BIT S 08 WV 045 HOBET 8.6 12292 0.73 11.33 171.70
16 C 06/98 BIT S 08 WV 045 HOBET 61.9 12236 0.74 10.87 168.98
17 C 04/97 BIT U 08 KY 159 MARTIN COUNTY 39.1 12467 0.68 8.41 173.03
18 C 12/97 BIT U 08 WV 045 RUM CREEK 40.4 12545 0.70 9.63 169.95
19 S 04/97 BIT U 08 WV 059 SIDNEY COAL 37.3 12429 0.68 8.62 175.88
COAL PRICES REPORTED EXCLUDE $3,169,119.36 PAID TO NEEI FOR COAL DELIVERED TO BRAYTON POINT AND SALEM HARBOR.
<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 1/97
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 Diane M. Healy
10 Title Analyst
11 Date Report Completed March 13, 1997
<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 3/98 BIT S 45 999 999 CNTRL CERREJON 45.5 12198 0.73 7.37 162.25
<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 2/97
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 Diane M. Healy
10 Title Analyst
11 Date Report Completed April 14, 1997
<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 07/97 BIT U 08 WV 059 ASHLAND 38.1 12842 0.67 9.04 176.23
13 C 12/96 BIT U 8 KY 159 MARTIN COUNTY 2.3 12467 0.68 8.41 177.52
14 C 08/97 BIT U 50 IM 999 NORTE DE SANTAN 27.8 12705 0.75 8.48 162.19
15 C 03/98 BIT U 8 KY 159 PONTIKI 80.1 12815 0.68 6.67 176.12
16 C 05/97 BIT S 8 WV 39 SAMPLES 39.4 12477 0.70 11.13 170.61
Coal prices reported exclude $3,052,821.37 paid to NEEI for coal delivered to Brayton Point and Salem Harbor.
<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 02/97
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 Diane M. Healy
10 Title Analyst
11 Date Report Completed April 14, 1997
<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 02/97 BIT U 8 WV 5 HAMPTON3 30.4 12723 0.68 9.63 179.42
13 C 06/98 BIT S 8 WV 045 HOBET 10.2 12246 0.77 11.69 173.20
14 C 12/97 BIT U 8 WV 045 RUM CREEK 40.3 12376 0.69 11.57 175.29
<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 03/97
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 Diane M. Healy
10 Title Analyst
11 Date Report Completed May 13,1997
<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 45 IM 999 CERREJON 42.5 12071 0.65 5.63 161.91
13 C 03/98 BIT S 45 999 999 CERREJON CNTRL 28.7 11870 0.70 7.75 171.62
14 C 03/98 BIT U 8 KY 159 PONTIKI 39.9 12814 0.67 6.56 180.06
15 C 12/97 BIT U 8 WV 045 RUM CREEK 40.5 12363 0.69 12.36 169.10
16 C 04/97 BIT S 8 WV 39 SAMPLES 13.5 12554 0.70 11.68 171.06
17 C 05/97 BIT S 8 WV 39 SAMPLES 26.9 12657 0.71 11.02 167.04
18 C 04/97 BIT U 8 WV 059 SIDNEY COAL 40.1 12414 0.77 9.24 176.02
Coal prices reported exclude $3,112,615.92 paid to NEEI for coal delivered to Brayton Point and Salem Harbor.
<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 03/97
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 Diane M. Healy
10 Title Analyst
11 Date Report Completed May 13, 1997
<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 12/98 BIT S 45 IMP 999 EL CERREJON 40.1 12033 0.70 5.92 193.48
13 C 04/97 BIT U 8 KY 159 MARTIN COUNTY 39.5 12540 0.73 9.29 179.72
<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>
