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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 of the
Securities Exchange Act of 1934
Date of Earliest Event Reported: April 27, 1994
THE NARRAGANSETT ELECTRIC COMPANY
(exact name of registrant as specified in charter)
Rhode Island 0-898 05-0187805
(state or other (Commission (I.R.S. Employer
jurisdiction of File No.) Identification No.)
incorporation)
280 Melrose Street, Providence, Rhode Island 02907
(Address of principal executive offices)
(401) 941 - 1400
(Registrant's telephone number, including area code)
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Item 5. Other Events
The Narragansett Electric Company (Narragansett), a
subsidiary of New England Electric System, filed a rate agreement
with the Rhode Island Public Utilities Commission (RIPUC) on
April 27, 1994. The Agreement between Narragansett and the Rhode
Island Division of Public Utilities and Carriers (Division)
provides for a 5% base rate discount, excluding fuel costs in
base rates, for Narragansett's large commercial and industrial
customers (over 200 megawatts) who enter into service extension
agreements. The service extension agreements provide for a
rolling five-year notice to Narragansett prior to the customer
self-generating additional electricity or purchasing electricity
from another source. The service extension agreements would
contain a clause whereby customers could reduce the notice
provision from five to three years by agreeing to repay to
Narragansett's storm contingency fund all discounts received
during the prior two years with interest. The amount of the
proposed discount, assuming all eligible customers participate,
is estimated at $4 million per year.
The Agreement also provides for Narragansett to begin
recognizing unbilled revenues for accounting purposes. Unbilled
revenues at December 31, 1993, of approximately $14 million would
be amortized to income over the twenty-one month period April
1994 through December 1995.
Narragansett and the Division have requested an effective
date for the Agreement of May 15, 1994. The Agreement is subject
to review and approval by the RIPUC.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this Current Report on
Form 8-K to be signed on its behalf by the undersigned thereunto
duly authorized.
THE NARRAGANSETT ELECTRIC COMPANY
s/John G. Cochrane
_________________________
John G. Cochrane
Assistant Treasurer
April 28, 1994
