<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 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 9/30/96 897,026 51,905,911 8,650,985 9,548,011
Additions & Revisions
through 12/31/96 (9,756) (2,499,980) (416,664) (426,420)
--------- ---------- ---------- ----------
Balance 887,270 49,405,931 8,234,321 9,121,591
Production 4th Qtr.1996 (78,180) (2,769,709) (461,618) (539,798)
--------- ---------- ---------- ----------
Balance 12/31/96 809,090 46,636,222 7,772,703 8,581,793
</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 0 746
Dorchester 0 51
-- -----
0 797
-- -----
No. of productive wells
Samedan 5 1,180*
Dorchester 0 69*
-- -----
5 1,249*
-- -----
No. of wells drilled 5 2,046
(both exploration and development) -- -----
* Includes depleted/sold wells as follows:
Samedan 5 521
Dorchester 0 69
-- -----
5 590
-- -----
New Program
-----------
None.
<TABLE>
INVESTMENT
---------
<CAPTION>
Budget Authorized
Actual By SEC
------------------------- -----------------
Twelve Since
Quarter Months 1/1/95 1995 - 1998
---------- ---------- ---------- -----------------
<S> <C> <C> <C> <C>
Samedan $4,317,910 $13,544,460 $18,961,338 $30,000,000 (A)
(A) Authorized through December 31, 1998, by Order dated December 20, 1994
(Release No. 35-26197; 70-7055).
</TABLE>
<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
12/31/96 12/31/96 12/31/96
-------- --------- ---------
<S> <C> <C> <C>
2. Sales to nonaffiliates
(Exhibit c.):
Equivalent barrels of fuel
produced 539,799 2,426,135 50,776,029
Average price per barrel $ 13.94 $ 13.74 $ 14.03
----------- ------------ --------------
Sales revenues $ 7,523,845 $ 33,338,230 $ 712,262,059
3. Loss to NEP 586,815 21,648,465 350,479,980
4. Flow through of excess deferred 529,499 2,354,323 83,778,252
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 $8,640,159 $ 57,341,018 $1,182,557,857
----------- ------------ --------------
New Program: None.
f. Credits applied to
New England Power Company (NEP):
1. Disposition of proceeds:
Amortization of cost of
fuel reserves* $4,400,490 $ 49,163,223 $1,081,940,167
Production costs 2,382,069 4,427,976 82,437,448
State taxes 1,857,600 2,549,900 11,502,575
Savings to NEP - - 8,701,242
Royalty to NEP - - 1,099,807
Other - 1,199,919 1,265,391
----------- ------------ --------------
Total $ 8,640,159 $ 57,341,018 $1,186,946,630
----------- ------------ --------------
Net income/(loss)/retained $ - $ - $ (4,388,773)
deficit ----------- ------------ --------------
</TABLE>
<PAGE>
-4-
<TABLE>
f. continued
<CAPTION>
Quarter Year Inception
Ended Ended Thru
12/31/96 12/31/96 12/31/96
-------- --------- ---------
<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 $ 25,878,422 $ 43,731,259 $ -
------------ ------------ ------------
Losses accrued 586,815 21,648,465 350,479,979
Losses passed on to NEP*** (4,816,772) (43,731,259) (328,831,514)
------------ ------------ ------------
Ending balance in account $ 21,648,465 $ 21,648,465 $ 21,648,465
------------ ------------ ------------
* During 1996, NEEI recorded a $13 million adjustment which reduced its amortization
expense to correct amounts recorded in the years 1990 through 1996. The adjustment
resulted from an overstatement of NEEI's production figures used in its
amortization calculations. The following table shows the effects of this
correction:
Flow through
of excess
Amortization Deferred Taxes
(000's) (000's)
------------ --------------
1996 before adjustment $ 62,278 $ 3,269
Correction 1990-1996 (13,115) (914)
------------ --------------
$ 49,163 $ 2,355
============ ==============
** 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, 1996 (net)
Subordinated notes 4,676,080 15,743,491 1 -
Common stock and premium 250,000 - -
----------- ----------- ------------
Total investment by NEES 4,926,080 15,743,491 -
Investment by NEES-during the
quarter (net)
Subordinated notes 577,300 - -
Total investment by NEES through
December 31, 1996 (net)
Subordinated notes 5,253,380 15,743,491 -
Common stock and premium 250,000 - -
----------- ----------- ------------
$ 5,503,380 $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 12/13/96 $ 577,300 $ - $ -
ended December 31, 1996
Payments of
subordinated notes to NEES
during quarter ended
December 31, 1996
---------- ------- -------
Net change in investment $ 577,300 $ - $ -
---------- ------- -------
_______________
(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, 1996, (unaudited,
subject to adjustment)
Exhibit h-2 Statement of Income and Retained Deficit of NEEI for the
periods ended December 31, 1996 (unaudited, subject to adjustment)
Exhibit h-3 Statement of Cash Flows of NEEI for the periods ended
December 31, 1996 (unaudited, subject to adjustment)
Exhibit h-4 Computation of Bank Interest for the quarter ended
December 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) 4th Quarter
Quantity of fuel (equiv. bbl) 345,603
Average net price (per equiv. bbl) $ 6.75
-------------
Cost to NEEI $ 2,334,007
Loss from NEEI fuel
exploration activities 4,816,772
-------------
Cost to NEP 7,150,779
Adjustments, inspection charges, etc. 379,424*
------------- -----------
Total $ 7,530,203
===========
* Primarily represents a demurrage adjustment relating to 3rd Quarter.
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, 1996 through December 31, 1996, 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
-------- -------- ----------- ------------------
Niles Channel Canadian County, OK
Powers D Well 10/01/96* 172
George Murray Well # 1-3 12/31/96* 281
Banner Canadian County, OK
Alma Well # 1-3 12/31/96* 566
North Oswalt Love County, OK
Cantrell Well # 1-17 12/31/96* 0
Banks Well # 1-9 12/31/96* 493
SE Crane Custer County, OK
4-D Cattle Co. 12/31/96* 1,483
Greenfield Blaine County, OK
Lake Farms # 1-33 12/31/96* 0
West Grand Ellis County, OK
BMB Well # 6-1 12/31/96* 74
SW Maysville Garvin County, OK
WE Bigbie Well # 1 12/31/96* 85
Clinton Custer County, OK
Oscar Collins Well # 1 12/31/96* 72
Curtis Lockhart # 3-9 12/31/96* 3,336
Meacham Well # 3-2 12/31/96* 456
Varna Well # 1-6 12/31/96* 0
Minco Grady County, OK
Wehling Well # 1-21 12/31/96* 607
------
7,625
======
* Reported by Samedan in the fourth quarter of 1996.
<PAGE>
-8-
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 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 1996.
<PAGE>
-9-
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, 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 prospect Filed herewith
(Old Program)
c-1 Production and net revenue for the Filed herewith
quarter ended December 31, 1996
(Old Program)
c-2 Production and net revenue for the Filed herewith
year ended December 31, 1996
(Old Program)
h-1 Balance Sheet at December 31, 1996 Filed herewith
(Unaudited, Subject to Adjustment)
h-2 Statement of Income and Retained Filed herewith
Deficit for the Periods Ended
December 31, 1996 (Unaudited,
Subject to Adjustment)
h-3 Statement of Cash Flows for the Periods Filed herewith
Ended December 31, 1996 (Unaudited,
Subject to Adjustment)
h-4 Computation of Bank Interest for the Filed herewith
Quarter Ended December 31, 1996
i Fuel Purchased for NEP for the Quarter Filed herewith
Ended December 31, 1996
j-1 Monthly Report of Cost and Quality Filed herewith
of Fuels for Electric Plants
October 1996 (Brayton Point)
j-2 Monthly Report of Cost and Quality Filed herewith
of Fuels for Electric Plants
October 1996 (Salem Harbor)
j-3 Monthly Report of Cost and Quality Filed herewith
of Fuels for Electric Plants
November 1996 (Brayton Point)
j-4 Monthly Report of Cost and Quality Filed herewith
of Fuels for Electric Plants
November 1996 (Salem Harbor)
j-5 Monthly Report of Cost and Quality Filed herewith
of Fuels for Electric Plants
December 1996 (Brayton Point)
j-6 Monthly Report of Cost and Quality Filed herewith
of Fuels for Electric Plants
December 1996 (Salem Harbor)
<PAGE>
<TABLE>
Exhibit a
NEW ENGLAND ENERGY INCORPORATED
INVESTMENT IN PARTNERSHIPS BY PROSPECT - OLD PROGRAM
DECEMBER 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 17,348,177.51 51,605,954.27 68,954,131.78
62436 Eugene Island 247/8/9 5,215,869.84 23,383,100.23 28,598,970.07
61402 Northeast Chevron 2,564,516.91 23,292,927.25 25,857,444.16
62493 Eugene Island Blk 208 1,584,198.43 18,841,421.00 20,425,619.43
62559 West Delta 18/33 8,777,050.78 11,000,230.07 19,777,280.85
62479 Main Pass 90/93+4/102+5 3,857,539.09 15,704,439.45 19,561,978.54
62367 Hl 21/22/22L/34/50/51 3,990,235.56 14,599,104.64 18,589,340.20
61998 High Island A365/A376 0.00 12,032,536.55 12,032,536.55
62282 West Cameron b131/132 0.00 5,903,897.14 5,903,897.14
62289 Main Pass 107/108 1,445,886.28 8,601,380.72 10,047,267.00
62468 Vermilion 114/109 1,323,006.83 5,717,343.33 7,040,350.16
61898 Eugene Island B 24&27 2,966,101.13 4,030,992.27 6,997,093.40
62331 West Delta 27/28/48 2,746,928.39 3,963,376.85 6,710,305.24
21494 Banner 311,363.33 5,304,839.00 5,616,202.33
62554 Eugene Island 28 1,739,766.26 3,778,996.01 5,518,762.27
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 3,078,504.71 5,300,294.20
62365 Matagorda Is B 586/87 2,208,706.08 2,818,120.08 5,026,826.16
53330 Derrick Draw/ PDR RIV 2,337,032.22 1,327,662.93 3,664,695.15
62558 South Timbalier 197 2,307,523.54 531,751.78 2,839,275.32
51673 Williston 0.00 2,634,434.80 2,634,434.80
62377 Vermilion Block 76 945,194.48 1,652,785.69 2,597,980.17
62543 West Cameron 433/457 333,421.78 2,246,051.71 2,579,473.49
62284 Vermilion Blk 167 924,503.21 1,513,959.69 2,438,462.90
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 409,491.11 1,717,809.42 2,127,300.53
42004 Provident City/Speaks 0.00 1,820,407.27 1,820,407.27
42017 Kildare Smackover T 975,025.30 2,680,168.33 3,655,193.63
Other 15,133,122.22 24,091,775.76 39,224,897.98
-------------- -------------- --------------
Total Productive Samedan 85,860,934.29 259,892,926.16 345,753,860.45
-------------- -------------- --------------
Dry Holes
Samedan (including depleted wells) 407,702,321.18 407,702,321.18
Work in Process
Samedan 7,532,221.35 7,532,221.35
Dorchester (terminated investment) 67,401,440.17 67,401,440.17
-------------- -------------- --------------
Grand Total 568,496,916.99 259,892,926.16 828,389,843.15
============== ============== ==============
*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, 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 2,948.76 1,511,851.00 68,339.892,852,433.24 2,920,773.13
62367 HI 21/22/22L/34/50/51 1,251.99 414,610.00 28,522.66 839,953.36 868,476.02
61998 High Island A365/A376 5,558.08 120,659.00 125,835.66 273,811.01 399,646.67
42017 Kildare Smackover T 18,414.31 (964.00) 363,920.47 10,222.69 374,143.16
62289 Main Pass 107/108 3,197.04 (34,504.00) 74,193.13 250,541.78 324,734.91
61898 Eugene Island B 24/27 2,917.74 96,785.00 66,724.16 223,030.32 289,754.48
62479 Main Pass 90/93+4/102+5 155.55 134,476.00 2,520.19 281,276.72 283,796.91
62365 Matagora Island B586/87 85.78 126,963.00 1,860.85 231,987.03 233,847.88
53330 Derrick Draw/PDR RIV 11,433.73 (1,179.00) 228,965.13 389.99 229,355.12
62288 West Cameron Blk 290 284.35 98,655.00 6,167.10 214,603.81 220,770.91
62554 Eugene Island 28 2,501.88 63,954.00 57,201.33 143,732.80 200,934.13
62366 Brazos 400.12.13.435 406.79 92,479.00 8,036.28 166,780.03 174,816.31
61410 High Island B270/281 420.57 79,254.00 9,197.24 165,536.36 174,733.60
62493 Eugene Island Blk 208 6,668.55 2,912.00 146,157.63 6,157.14 152,314.77
62582 Brazos 476/491/449 65.71 76,300.00 1,469.98 133,327.87 134,797.85
Other 21,869.44 (12,541.25) 256,174.60 284,774.61 540,949.21
--------- ------------------------ ------------ ------------
Totals 78,180.27 2,769,709.75 1,445,286.306,078,558.76 7,523,845.06
========= ======================== ============ ============
</TABLE>
<PAGE>
<TABLE>
Exhibit c-2
NEW ENGLAND ENERGY INCORPORATED
PRODUCTION AND NET REVENUE - OLD PROGRAM
FOR THE YEAR ENDED DECEMBER 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 14,072.16 4,300,303.00 286,662.978,788,515.45 9,075,178.42
62367 HI 21/22/22L/34/50/51 5,114.53 1,927,477.00 103,086.444,592,764.19 4,695,850.63
62479 Main Pass 90/93+4/102+5 155.55 1,078,589.00 2,520.192,665,028.12 2,667,548.31
62289 Main Pass 107/108 13,771.02 854,770.00 278,653.312,093,849.76 2,372,503.07
61410 High Island B270/281 2,561.51 661,791.00 50,911.301,525,387.74 1,576,299.04
61998 High Island A365/A376 29,463.02 406,119.00 571,559.69 972,505.90 1,544,065.59
61898 Eugene Island B 24/27 16,149.00 394,422.00 308,374.14 944,909.45 1,253,283.59
62366 Brazos 400.12.13.435 2,243.68 517,627.00 39,536.68 994,865.21 1,034,401.89
62554 Eugene Island 28 14,554.61 310,245.00 277,866.46 707,099.76 984,966.22
62365 Matagora Island B586/87 263.64 539,928.00 4,945.99 973,328.66 978,274.65
62288 West Cameron Blk 290 1,247.24 456,234.00 23,293.35 935,236.85 958,530.20
53330 Derrick Draw/PDR RIV 49,583.30 659.00 911,658.47 1,687.34 913,345.81
42017 Kildare Smackover T 42,548.80 31,565.00 805,219.74 53,228.09 858,447.83
62582 Brazos 476/491/449 272.97 336,422.00 5,444.04 626,712.80 632,156.84
62493 Eugene Island Blk 208 30,289.78 16,231.00 586,533.46 41,669.72 628,203.18
Other 102,744.06 774,210.75 1,725,680.581,439,494.00 3,165,174.58
---------- ---------------------------------------------------
Totals 325,034.87 12,606,592.75 5,981,946.81 27,356,283.04 33,338,229.85
========== ===================================================
</TABLE>
<PAGE>
<TABLE>
Exhibit h-1
NEW ENGLAND ENERGY INCORPORATED
Balance Sheet
December 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 $175,000 with affiliated companies $ 331,551 $ (132,157) $ 199,394
Accounts receivable:
Affiliated companies:
- accrued loss to be passed
on to affiliate 21,648,465 - 21,648,465
- from sales of oil 7,960 - 7,960
- other 52,396 - 52,396
Prepaid expenses 342,312 - 342,312
-------------- ------------ --------------
Total current assets 22,382,684 (132,157) 22,250,527
-------------- ------------ --------------
Property at cost:
Cost of fuel reserves:
Exploration and development costs:
Samedan 753,456,182 - 753,456,182
Dorchester 67,401,440 - 67,401,440
Cost of capital 450,648,517 - 450,648,517
Other 37,201,151 - 37,201,151
-------------- ------------ --------------
1,308,707,290 - 1,308,707,290
Less-accumulated amortization (1,081,940,167) -(1,081,940,167)
-------------- ------------ --------------
Net cost of fuel reserves 226,767,123 - 226,767,123
Work in process - Samedan 7,532,221 - 7,532,221
-------------- ------------ --------------
Total property 234,299,344 - 234,299,344
-------------- ------------ --------------
$ 256,682,028 $ (132,157) $ 256,549,871
============== ============ ==============
LIABILITIES AND PARENT COMPANY'S INVESTMENT
- -------------------------------------------
Current liabilities:
Accrued exploration and development costs $ 29,578,745 $ - $ 29,578,745*
Accounts payable 1,953,634 58,592 2,012,226
Accrued interest 941,389 - 941,389
Accrued taxes 3,763,759 (184,254) 3,579,505
-------------- ------------ --------------
Total current liabilities 36,237,527 (125,662) 36,111,865
-------------- ------------ --------------
Deferred income taxes 72,292,378 (42,800) 72,249,578
-------------- ------------ --------------
Deferred credit 2,648,200 - 2,648,200
-------------- ------------ --------------
Notes payable to banks under credit agreement 149,000,000 - 149,000,000
-------------- ------------ --------------
Parent company's investment:
Subordinated notes payable to parent 5,253,38015,743,491 20,996,871
Common stock, par value $1 per share 2,500 - 2,500
Paid-in capital 247,500 - 247,500
Retained deficit (8,999,457)(15,707,186) (24,706,643)
-------------- ------------ --------------
Total parent company's investment (3,496,077) 36,305 (3,459,772)
-------------- ------------ --------------
$ 256,682,028 $ (132,157) $ 256,549,871
============== ============ ==============
*Accrued exploration and development costs:
Total
(All Samedan)
-------------
Exploration $11,806,138
Development 19,069,580
Work in process 274,917
Advance (1,571,890)
-----------
29,578,745
===========
</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, 1996
(Unaudited, Subject to Adjustment)
<CAPTION>
Old Program New Program Combined
----------- ----------- --------
<S> <C> <C> <C>
Operating revenue:
Sales of fuel to an affiliate $ 7,530,203$ -$ 7,530,203
Loss passed on to an affiliate (4,816,772) - (4,816,772)
Accrued loss to be passed on to an affiliate 586,815 - 586,815
Sales to nonaffiliates:
Oil 1,445,286 - 1,445,286
Gas 6,078,559 727 6,079,286
------------------------------------
Total operating revenue 10,824,091 727 10,824,818
------------------------------------
Operating expenses:
Purchases of fuel for an affiliate 2,713,431 - 2,713,431
Amortization of cost of fuel reserves 4,400,490 - 4,400,490
Production costs 1,182,150 1,905 1,184,055
------------------------------------
Total operating expenses 8,296,071 1,905 8,297,976
------------------------------------
Operating income/(loss) 2,528,020 (1,178) 2,526,842
Other income/(expense):
Interest income - - -
Interest expense (593,300) - (593,300)
Other expense (1,199,919) - (1,199,919)
State taxes (1,836,233) - (1,836,233)
------------------------------------
Operating and other income/(loss) (1,101,432) (1,178) (1,102,610)
------------------------------------
Federal income taxes:
Current federal income taxes 1,355,350 (45,500) 1,309,850
Deferred federal income taxes (2,084,982) - (2,084,982)
------------------------------------
Net federal income taxes (729,632) (45,500) (775,132)
------------------------------------
Net income (371,800) 44,322 (327,478)
Retained deficit at beginning of period (8,627,657)(15,751,508)(24,379,165)
------------------------------------
Retained deficit at end of period $ (8,999,457) $(15,707,186) $(23,706,643)
============ ============ ============
</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, 1996
(Unaudited, Subject to Adjustment)
<CAPTION>
Old Program New Program Combined
----------- ----------- --------
<S> <C> <C> <C>
Operating revenue:
Sales of fuel to an affiliate $ 64,505,151$ -$ 64,505,151
Loss passed on to an affiliate (43,731,259) - (43,731,259)
Accrued loss to be passed on to an affiliate 21,648,465 - 21,648,465
Sales to nonaffiliates:
Oil 5,981,947 6 5,981,953
Gas 27,356,283 10,769 27,367,052
------------------------------------
Total operating revenue 75,760,587 10,775 75,771,362
------------------------------------
Operating expenses:
Purchases of fuel for an affiliate 20,773,892 - 20,773,892
Amortization of cost of fuel reserves* 49,163,223 - 49,163,223
Production costs 4,427,976 15,129 4,443,105
General and Administrative Costs - - -
------------------------------------
Total operating expenses 74,365,091 15,129 74,380,220
------------------------------------
Operating income/(loss) 1,395,496 (4,354) 1,391,142
Other income/(expense):
Interest income - - -
Interest expense (2,289,891) - (2,289,891)
Other Expense (1,218,616) - (1,218,616)
State taxes (2,466,833) - (2,466,833)
------------------------------------
Operating and other income/(loss) (4,579,844) (4,354) (4,584,198)
------------------------------------
Federal income taxes:
Current federal income taxes 16,766,985 (46,600) 16,720,385
Deferred federal income taxes (19,900,382) - (19,900,382)
------------------------------------
Net federal income taxes (3,133,397) (46,600) (3,179,997)
------------------------------------
Net income (1,446,447) 42,246 (1,404,201)
Retained deficit at beginning of period (7,553,010)(15,749,432)(23,302,442)
------------------------------------
Retained deficit at end of period $ (8,999,457) $(15,707,186) $(24,706,643)
============ ============ ============
*During 1996, NEEI recorded a $13 million adjustment which reduced its amortization
expense to correct amounts recorded in the years 1990 through 1996. The adjustment
resulted from an overstatement of NEEI's production figures used in its amortization
calculations. The following table shows the effects of this correction:
Amortization
(000's)
------------
1996 before adjustment $ 62,278
Correction 1990-1996 (13,115)
------------
Net amount recorded $ 49,163
============
Included in deferred taxes is $5,185 associated with the amortization
adjustmentstated above.
</TABLE>
<PAGE>
<TABLE>
Exhibit h-3
Page 1 of 2
NEW ENGLAND ENERGY INCORPORATED
Statements of Cash Flows
For the Quarter Ended December 31, 1996
(Unaudited, Subject to Adjustment)
<CAPTION>
Old Program New Program Combined
----------- ----------- --------
<S> <C> <C> <C>
Operating Activities:
Net income $ (371,800)$ 44,322$ (327,478)
Adjustments to reconcile net income to
net cash provided by operating activities:
Amortization of cost of fuel reserves 4,400,490 - 4,400,490
Loss passed on to an affiliate 4,816,772 - 4,816,772
Accrued loss to be passed on to an affiliate(586,815) - (586,815)
Deferred income taxes (1,987,781) - (1,987,781)
(Increase)/decrease in accounts receivable
(excluding loss to be passed on to affiliate) 6,359,782 - 6,359,782
Increase/(decrease) in accrued exploration
and development costs (969,237) - (969,237)
Increase/(decrease) in accounts payable (3,432,678) (98,754) (3,531,432)
Increase/(decrease) in accrued interest payable 247,727 -247,727
Increase/(decrease) in accrued taxes (661,668) (4,303) (665,971)
------------ ---------------------
Net cash provided by operating activities $ 7,814,792 $ (58,735) $ 7,756,057
------------ ---------------------
Investing Activities:
Investment in property - Samedan:
Exploration (also includes dry holes, depleted
wells and work in process) $ (2,919,661)$ -$ (2,919,661)
Development (also reflects transfer of
depleted wells) (1,143,465) - (1,143,465)
Capital costs (1,561,617) - (1,561,617)
Other (1,083,391) - (1,083,391)
------------ ---------------------
Net cash used in investing activities $ (6,708,134)$ -$ (6,708,134)
------------ ---------------------
Financing Activities:
Subordinated notes payable to parent-issues $ 577,300 $ - $ 577,300
Subordinated notes payable to parent-retirements - - -
Changes in notes payable to bank under
credit agreement (7,000,000) - (7,000,000)
------------ ---------------------
Net cash used in financing activities $ (6,422,700)$ -$ (6,422,700)
------------ ---------------------
Net increase/(decrease) in cash and cash equivalents $ (5,316,042) $ (58,735) $ (5,374,777)
Cash and cash equivalents at beginning of period5,647,593 (73,422) 5,574,171
------------ ---------------------
Cash and cash equivalents at end of period $ 331,551 $(132,157) $ 199,394
------------ ---------------------
</TABLE>
<PAGE>
<TABLE>
Exhibit h-3
Page 2 of 2
NEW ENGLAND ENERGY INCORPORATED
Statements of Cash Flows
For the Year Ended December 31, 1996
(Unaudited, Subject to Adjustment)
<CAPTION>
Old Program New Program Combined
----------- ----------- --------
<S> <C> <C> <C>
Operating Activities:
Net income $ (1,446,447) $ 42,246$ (1,404,201)
Adjustments to reconcile net income to
net cash provided by operating activities:
Amortization of cost of fuel reserves 49,163,223 - 49,163,223
Loss passed on to an affiliate 43,731,259 - 43,731,259
Accrued loss to be passed on to an affiliate (21,648,465) -(21,648,465)
Deferred income taxes (20,511,781) - (20,511,781)
(Increase)/decrease in accounts receivable
(excluding loss to be passed on to affiliate) 27,546 410 27,956
Increase/(decrease) in accrued exploration
and development costs 2,343,316 - 2,343,316
Increase/(decrease) in accounts payable 115,877 (191,351) (75,474)
Increase/(decrease) in accrued interest payable 181,133 -181,133
Increase/(decrease) in accrued taxes payable 2,207,459 (5,400) 2,202,059
------------ ---------------------
Net cash provided by operating activities $ 54,163,120 $(154,095)$ 54,009,025
------------ ---------------------
Investing Activities:
Investment in property - Samedan:
Exploration (also includes dry holes, depleted
wells and work in process) $ (7,743,523)$ -$ (7,743,523)
Development (also reflects transfer of
depleted wells) (5,267,609) - (5,267,609)
Capital costs (6,784,326) - (6,784,326)
Other (2,918,437) - (2,918,437)
------------ ---------------------
Net cash used in investing activities $(22,713,895)$ -$(22,713,895)
------------ ---------------------
Financing Activities:
Subordinated notes payable to parent-issues $ 4,771,136 $ - $ 4,771,136
Subordinated notes payable to parent-retirements (4,000,000) - (4,000,000)
Changes in notes payable to bank under
credit agreement (33,000,000) - (33,000,000)
------------ ---------------------
Net cash used in financing activities $(32,228,864)$ -$(32,228,864)
------------ ---------------------
Net increase/(decrease) in cash and cash equivalents $ (779,639) $(154,095)$ (933,734)
Cash and cash equivalents at beginning of period1,111,190 21,938 1,133,128
------------ ---------------------
Cash and cash equivalents at end of period $ 331,551 $(132,157) $ 199,394
------------ ---------------------
</TABLE>
<PAGE>
<TABLE>
Exhibit h-4
NEW ENGLAND ENERGY INCORPORATED
Computation of Bank Interest
Quarter Ended December 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
-----------
$ 40,000,000 02/13/96 02/13/97 5.2975 $ 541,522.21
15,000,000 07/18/96 10/18/96 5.8375 41,348.96
10,000,000 08/29/96 10/31/96 5.6725 47,270.83
15,000,000 09/13/96 12/13/96 5.8600 178,241.67
37,000,000 09/13/96 03/13/97 6.1725 583,644.17
39,000,000 09/18/96 10/21/96 5.7325 124,204.17
11,000,000 10/18/96 11/18/96 5.6100 44,568.33
30,000,000 10/21/96 01/21/97 5.7625 345,750.00
6,000,000 10/21/96 01/21/97 5.7625 69,150.00
10,000,000 10/31/96 11/30/96 5.6100 43,633.33
11,000,000 11/13/96 01/18/97 5.7350 85,865.69
10,000,000 11/30/96 12/30/96 5.6100 48,308.34
15,000,000 12/13/96 01/13/97 5.8600 46,391.67
10,000,000 12/30/96 01/30/97 5.9225 3,290.28
---------------
2,203,189.65
Interest Rate Swap (91,332.11)
Fees (Primarily facility) 43,059.24
---------------
Total Old Program $2,154,916.78
---------------
</TABLE>
<PAGE>
<TABLE>
Exhibit i
NEW ENGLAND ENERGY INCORPORATED
Fuel Purchased for NEP
for the Quarter Ended December 31, 1996
-----------------------------------------
<CAPTION>
Exploration
- -----------
Date purchased (delivered) Oct.22,1996 Oct.28,1996
----------- -----------
<S> <C> <C>
Quantity of fuel (eq. Bbl) 128,310.40 217,292.59
Average net price (per eq. Bbl) $ 6.34 $ 7.00
------------- --------------
Cost to NEEI 813,774.43 $ 1,522,323.42
Loss from NEEI fuel
exploration activities 1,841,503.33 2,975,269.20
-------------- --------------
Cost to NEP $2,655,277.76 $ 4,497,592.62
------------- --------------
</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 10/96
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/ Diane M. Healey
10 Title Fuel Analyst
11 Date Report Completed February 7, 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 06/96 BIT U 08 WV 059 ASHLAND 65.9 12802 0.67 8.95 175.85
13 C 12/97 BIT S 45 IMP 999 EL CERREJON 39.0 12135 0.60 5.41 198.84
14 C 03/97 BIT U 8 WV 5 HAMPTON 40.5 12625 0.66 9.85 170.70
15 C 08/97 BIT U 50 IM 999 NORTE DE SANTAN 25.4 12512 0.66 8.49 162.26
16 C 03/98 BIT U 8 KY 159 PONTIKI 0.6 12800 0.77 8.00 177.56
17 C 08/96 BIT U 8 WV 045 RUM CREEK 3.5 12425 0.69 10.16 166.37
18 C 12/97 BIT U 8 WV 045 RUM CREEK 36.6 12338 0.72 9.88 168.53
19 C 05/97 BIT S 8 WV 39 SAMPLES 32.3 12595 0.72 10.91 164.03
20 C 05/98 BIT S 8 WV 39 SAMPLES 7.8 12245 0.70 11.37 163.90
21 C 12/96 BIT U 8 WV 59 WINIFREDE 12.8 12862 0.62 8.75 176.43
<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-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 10/96
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/ Diane M. Healey
10 Title Fuel Analyst
11 Date Report Completed February 7, 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 03/98 BIT S 45 999 999 CERREJON CNTRL 25.4 11802 0.49 5.11 161.89
13 C 12/96 BIT S 50 IM 999 DIABLO PASO 52.7 12671 0.65 7.08 145.69
<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 11/96
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/ Diane M. Healey
10 Title Fuel Analyst
11 Date Report Completed February 7, 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 12/97 BIT S 45 IMP 999 EL CERREJON 34.5 11964 0.62 6.06 153.83
13 C 03/97 BIT U 8 WV 5 HAMPTON 20.6 12663 0.69 10.69 167.26
14 C 06/98 BIT S 8 WV 045 HOBET 31.3 12255 0.70 11.76 170.41
15 C 02/97 BIT U 50 IM 999 NORTE DE SANTAN 37.8 12887 0.67 6.04 158.50
16 C 08/97 BIT U 50 IM 999 NORTE DE SANTAN 38.1 13173 0.68 6.01 162.16
17 C 12/97 BIT U 8 WV 045 RUM CREEK 49.8 12437 0.71 10.79 169.46
18 C 05/97 BIT S 8 WV 39 SAMPLES 59.6 12484 0.73 11.51 164.32
<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 11/96
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/ Diane M. Healey
10 Title Fuel Analyst
11 Date Report Completed February 7, 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 12/96 BIT S 50 IM 999 DIABLO PASO 50.5 12657 0.62 6.25 147.68
<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 12/96
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/ Diane M. Healey
10 Title Fuel Analyst
11 Date Report Completed February 7, 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 39.5 12726 0.65 7.86 173.28
13 C 03/98 BIT S 45 999 999 CERREJON CNTRL 23.2 12090 0.49 5.09 162.38
14 C 04/97 BIT U 8 KY 159 MARTIN COUNTY 40.3 12443 0.72 8.58 175.25
15 C 12/97 BIT U 8 WV 045 RUM CREEK 73.5 12453 0.72 10.49 170.48
16 C 02/97 BIT U 08 KY 195 WHITES CLOUD 3.5 12282 0.63 8.35 150.86
17 S 12/96 BIT U 08 KY 195 WHITES CLOUD 3.8 12282 0.63 8.35 153.07
<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 12/96
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/ Diane M. Healey
10 Title Fuel Analyst
11 Date Report Completed February 7, 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 12/96 BIT S 50 IM 999 DIABLO PASO 45.2 12888 0.72 5.71 147.95
13 C 12/97 BIT U 8 WV 045 RUM CREEK 69.3 12466 0.71 10.47 176.55
14 C 05/97 BIT S 8 WV 39 SAMPLES 7.7 12438 0.73 11.76 171.70
15 C 02/97 BIT U 08 KY 195 WHITES CLOUD 2.6 12282 0.63 8.35 155.34
<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>
