<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1995
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Commission File Number 0-898
(LOGO) THE NARRAGANSETT ELECTRIC COMPANY
(Exact name of registrant as specified in charter)
Rhode Island 05-0187805
(State or other (I.R.S. Employer
jurisdiction of Identification No.)
incorporation or
organization)
280 Melrose Street, Providence, R.I. 02901
(Address of principal executive offices)
Registrant's telephone number, including area code
(401-784-7000)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes (X) No ( )
Common stock, par value $50 per share, authorized and
outstanding: 1,132,487 shares at March 31, 1995.
<PAGE>
PART I FINANCIAL INFORMATION
Item 1. Financial Statements
- ----------------------------
<TABLE>
THE NARRAGANSETT ELECTRIC COMPANY
Statements of Income
Periods Ended March 31
(Unaudited)
<CAPTION>
Three Months Twelve Months
------------ -------------
1995 1994 1995 1994
---- ---- ---- ----
(In Thousands)
<S> <C> <C> <C> <C>
Operating revenue $125,020 $125,461 $481,228 $484,343
-------- -------- -------- --------
Operating expenses:
Purchased electric energy, principally from
New England Power Company, an affiliate 72,802 78,313 295,167 313,108
Other operation 16,269 15,867 73,484 69,067
Maintenance 2,669 3,399 11,551 11,952
Depreciation 7,507 4,675 27,645 17,896
Taxes, other than federal income taxes 9,667 9,909 35,576 36,068
Federal income taxes 3,461 2,891 5,453 5,500
-------- -------- -------- --------
Total operating expenses 112,375 115,054 448,876 453,591
-------- -------- -------- --------
Operating income 12,645 10,407 32,352 30,752
Other income:
Allowance for equity funds used
during construction 209 278 958 755
Other income (expense) - net, including
related taxes (321) (787) (390) (517)
-------- -------- -------- --------
Operating and other income 12,533 9,898 32,920 30,990
-------- -------- -------- --------
Interest:
Interest on long-term debt 3,982 3,325 14,991 12,934
Other interest 1,101 554 3,443 2,066
Allowance for borrowed funds used during
construction - credit (316) (295) (1,554) (798)
-------- -------- -------- --------
Total interest 4,767 3,584 16,880 14,202
-------- -------- -------- --------
Net income $ 7,766 $ 6,314 $ 16,040 $ 16,788
======== ======== ======== ========
Statements of Retained Earnings
Retained earnings at beginning of period $ 91,556 $ 81,659 $ 86,871 $ 75,354
Net income 7,766 6,314 16,040 16,788
Dividends declared on cumulative
preferred stock (536) (536) (2,143) (2,079)
Dividends declared on common stock (566) (566) (2,548) (2,831)
Premium on redemption of preferred stock (361)
-------- -------- -------- --------
Retained earnings at end of period $ 98,220 $ 86,871 $ 98,220 $ 86,871
======== ======== ======== ========
The accompanying notes are an integral part of these financial statements.
Per share data is not relevant because the Company's common stock is wholly
owned by New England Electric System.
</TABLE>
<PAGE>
<TABLE>
THE NARRAGANSETT ELECTRIC COMPANY
Balance Sheets
(Unaudited)
<CAPTION>
March 31, December 31,
ASSETS 1995 1994
------ ---- ----
(In Thousands)
<S> <C> <C>
Utility plant, at original cost $630,335 $617,498
Less accumulated provisions for depreciation 165,611 161,557
-------- --------
464,724 455,941
Construction work in progress 38,010 35,974
-------- --------
Net utility plant 502,734 491,915
-------- --------
Current assets:
Cash 1,703 713
Accounts receivable:
From sales of electric energy 52,504 51,278
Other (including $7,106,000 and $9,306,000 from affiliates) 17,504 17,953
Less reserves for doubtful accounts 5,017 4,472
-------- --------
64,991 64,759
Unbilled revenues 10,800 13,100
Fuel, materials, and supplies, at average cost 6,234 5,170
Prepaid and other current assets 14,881 13,993
-------- --------
Total current assets 98,609 97,735
-------- --------
Deferred charges and other assets 57,857 57,727
-------- --------
$659,200 $647,377
======== ========
CAPITALIZATION AND LIABILITIES
------------------------------
Capitalization:
Common stock, par value $50 per share,
authorized and outstanding 1,132,487 shares $ 56,624 $ 56,624
Premiums on preferred stocks 170 170
Other paid-in capital 60,000 60,000
Retained earnings 98,220 91,556
-------- --------
Total common equity 215,014 208,350
Cumulative preferred stock 36,500 36,500
Long-term debt 193,873 188,862
-------- --------
Total capitalization 445,387 433,712
-------- --------
Current liabilities:
Short-term debt (including $8,075,000 to affiliates in 1995) 26,950 29,800
Accounts payable (including $43,657,000 and $47,900,000
to affiliates) 49,479 56,139
Accrued liabilities:
Taxes 5,545 143
Interest 3,172 5,615
Other accrued expenses 24,687 25,346
Customer deposits 5,246 5,261
Dividends payable 1,102 819
-------- --------
Total current liabilities 116,181 123,123
-------- --------
Deferred federal income taxes 71,903 70,253
Unamortized investment tax credits 8,392 8,518
Other reserves and deferred credits 17,337 11,771
-------- --------
$659,200 $647,377
======== ========
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
<TABLE>
THE NARRAGANSETT ELECTRIC COMPANY
Statements of Cash Flows
Quarters Ended March 31
(Unaudited)
<CAPTION>
1995 1994
---- ----
(In Thousands)
<S> <C> <C>
Operating activities:
Net income $ 7,766 $ 6,314
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 7,507 4,675
Deferred federal income taxes and investment tax credit - net 921 232
Allowance for funds used during construction (525) (573)
Amortization of unbilled revenue (2,052)
Decrease (increase) in accounts receivable, net
and unbilled revenue 2,068 418
Decrease (increase) in fuel, materials, and supplies (1,064) (1,428)
Decrease (increase) in prepaid and other current assets (888) 846
Increase (decrease) in accounts payable (6,660) (7,391)
Increase (decrease) in other current liabilities 4,337 3,923
Other, net 6,050 787
-------- --------
Net cash provided by operating activities $ 17,460 $ 7,803
-------- --------
Investing activities:
Plant expenditures, excluding allowance for
funds used during construction $(17,801) $(17,636)
-------- --------
Net cash used in investing activities $(17,801) $(17,636)
-------- --------
Financing activities:
Dividends paid on common stock $ (283) $ (566)
Dividends paid on preferred stock (536) (536)
Long-term debt - issues 5,000 5,000
Changes in short-term debt (2,850) 6,300
-------- --------
Net cash provided by financing activities $ 1,331 $ 10,198
-------- --------
Net increase in cash and cash equivalents $ 990 $ 365
Cash and cash equivalents at beginning of period 713 838
-------- --------
Cash and cash equivalents at end of period $ 1,703 $ 1,203
======== ========
Supplementary information:
Interest paid less amounts capitalized $ 6,941 $ 5,284
-------- --------
Federal income taxes paid $ (3,230) $ (949)
-------- --------
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
Note A
- ------
A 1986 Rhode Island Supreme Court decision held that the Rhode
Island Public Utilities Commission's (RIPUC) rate-making powers
include the authority to order refunds of amounts earned in excess
of an allowed return. As a result, the RIPUC monitors the
Company's earnings on a regular basis.
Note B - Hazardous Waste
- ------------------------
The Federal Comprehensive Environmental Response, Compensation
and Liability Act, more commonly known as the "Superfund" law,
imposes strict, joint and several liability, regardless of fault,
for remediation of property contaminated with hazardous substances.
The electric utility industry typically utilizes and/or
generates in its operations a range of potentially hazardous
products and by-products. New England Electric System (NEES)
subsidiaries currently have in place an environmental audit program
intended to enhance compliance with existing federal, state, and
local requirements regarding the handling of potentially hazardous
products and by-products.
The Company has been named as a potentially responsible party
(PRP) by either the U.S. Environmental Protection Agency or the
Massachusetts Department of Environmental Protection for two sites
(one of which is located in Massachusetts) at which hazardous waste
is alleged to have been disposed. The Company is currently aware
of other sites, and may in the future become aware of additional
sites, that it may be held responsible for remediating.
Gas was manufactured from coal in Rhode Island in the past.
The Company is aware of five sites on which gas was manufactured or
manufactured gas was stored that were owned either by the Company
or by its predecessor companies. It is not known to what extent
the Company would be held liable for hazardous wastes, if any, left
at these manufactured gas locations.
Predicting the potential costs to investigate and remediate
hazardous waste sites continues to be difficult. There are also
significant uncertainties as to the portion, if any, of the
investigation and remediation costs of any particular hazardous
waste site that may ultimately be borne by the Company. A
preliminary review by a consultant hired by the NEES companies of
the potential cost of investigating and, if necessary, remediating
<PAGE>
Note B - Hazardous Waste - Continued
- ------------------------
Rhode Island manufactured gas sites resulted in costs per site
ranging from less than $1 million to $8 million. An informal
survey of other utilities conducted on behalf of NEES and its
subsidiaries indicated costs in a similar range. Where
appropriate, the Company intends to seek recovery from its insurers
and from other PRPs, but it is uncertain whether and to what extent
such efforts would be successful. The Company believes that
hazardous waste liabilities for all sites of which it is aware will
not be material to its financial position.
Note C - New Accounting Standard
- --------------------------------
In March 1995, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards No. 121, Accounting for
the Impairment of Long-Lived Assets and for Long-Lived Assets to Be
Disposed Of (FAS 121), effective for fiscal year 1996. This
standard clarifies when and how to recognize an impairment of long-
lived assets. In addition, FAS 121 requires that all regulatory
assets be written off unless they continue to meet the criteria for
initially recording such regulatory assets. In order to be
initially recorded, a regulatory asset must have a high probability
of future recovery. However, once written off, a regulatory asset
can be restored if it again becomes probable of recovery. The
impact of this standard will be driven by the facts and
circumstances that exist when the standard is adopted and
thereafter.
Note D
- ------
In the opinion of the Company, these statements reflect all
adjustments (which include normal recurring adjustments) necessary
for a fair statement of the results of its operations for the
periods presented and should be considered in conjunction with the
notes to the financial statements in the Company's 1994 Annual
Report.
<PAGE>
Item 2. Management's Discussion and Analysis of Financial
---------------------------------------------------------
Condition and Results of Operations
-----------------------------------
This section contains management's assessment of The
Narragansett Electric Company's financial condition and the
principal factors having an impact on the results of operations.
This discussion should be read in conjunction with the Company's
financial statements and footnotes and the 1994 Annual Report on
Form 10-K.
Earnings
- --------
Net income for the first three months of 1995 increased $1.5
million compared with the same period last year. The increase in
first quarter income reflects the rate recovery commencing in 1995
of the Company's investment in new transmission facilities that
went into service in September 1994. This increase in income was
partially offset by decreased sales caused by unusually mild
weather conditions in the first quarter of 1995 and the loss of a
large customer in May 1994.
Rate Activity
- -------------
On March 1, 1995, the Company filed a request with the Rhode
Island Public Utilities Commission (RIPUC) to increase its base
rates by $30.5 million to be effective December 1995. As part of
<PAGE>
its filing, the Company proposed a special rate discount of 8
percent of base rates, for manufacturing customers that agree to
give the Company three to five years notice before they purchase
power from another supplier or generate any additional power
themselves. These discounts, which the Company proposed to be
recovered from all customers, are in addition to the 5 percent base
rate service extension discounts (SEDs) that became available to
large commercial and industrial customers in May 1994. Commencing
in 1995, pursuant to a rate settlement, the cost of the SED
programs are being passed on to New England Power Company (NEP),
the Company's affiliated wholesale power supplier. As an
alternative to the December 1995 effective date, the Company had
proposed to phase its requested rate increase in two steps -- the
first step in June 1995 ($13 million) and the second step in June
1996. In an open meeting on March 28, 1995, the RIPUC rejected the
alternative phased proposal.
<PAGE>
Operating Revenue
- -----------------
The following table summarizes the changes in operating
revenue:
Increase (Decrease) in Operating Revenue
First Quarter
-------------
1995 vs 1994
-------------
(In Millions)
Sales decrease $(4)
Unbilled revenues recognized
under rate agreement 2
Fuel recovery 1
Other 1
---
$ -
===
Kilowatthour (KWH) sales billed to ultimate customers
decreased 2.9 percent in the first three months of 1995 compared
with the same period last year. This decrease in KWH sales
reflects unusually mild weather conditions in the first quarter of
1995 and the loss of sales attributable to the May 1994 plant
closing of one of the Company's largest customers. Revenues from
this customer, excluding fuel and purchased power costs, were
approximately $0.7 million in 1994. Total KWH sales in 1995 are
expected to decline by approximately 2 percent compared with 1994.
The amount shown for unbilled revenues recognized reflects the
amortization of $14 million over a 21 month period that began April
<PAGE>
1994 in accordance with the Company's 1994 rate agreement.
Operating Expenses
- ------------------
The following table summarizes the changes in total operating
expenses discussed below:
Increase (Decrease) in Operating Expenses
First Quarter
-------------
1995 vs 1994
-------------
(In Millions)
Purchased electric energy:
Fuel costs $ 1
Integrated facilities
credits from NEP (6)
Other purchased electric energy (1)
Depreciation 3
---
$(3)
===
The Company owns a 10 percent share of the Manchester Street
Station and also owns the entire seven mile underground
transmission line associated with the facility as well as other
transmission facilities in Rhode Island. The Company's share of
the electricity generated by this plant is made available to NEP
which owns the remaining 90 percent of the station. The Company
receives a credit on its purchased power bill from NEP reflecting
<PAGE>
rate recovery of its investment in the station and the transmission
line, and for its fuel costs and other generation and transmission
costs. The change in the integrated facilities credit from NEP
shown in the table above is primarily due to the recovery of the
Company's investment in this new transmission line that was placed
in service in September 1994, as well as increased credits for
dismantlement costs being incurred on the Company's previously
retired South Street generating station.
The increase in depreciation expense in the first three months
of 1995 is primarily due to increased charges for dismantlement
costs for the previously retired South Street generating station.
Interest Expense
- ----------------
The increase in interest expense is due to increased long-term
and short-term debt outstanding in the first quarter of 1995, and
increased interest related to a rate adjustment mechanism.
Competitive Conditions
- ----------------------
The electric utility business is being subjected to increasing
competitive pressures, stemming from a combination of trends,
including increasing electric rates, improved technologies, and new
regulations and legislation intended to foster competition. See
<PAGE>
the Company's Annual Report on Form 10-K for the year ended
December 31, 1994.
On March 29, 1995, the Federal Energy Regulatory Commission
(FERC) issued a notice of proposed rule-making in which it stated
that recovery in rates of legitimate and verifiable stranded costs
should be allowed and that direct assignment of stranded costs to
departing customers is the appropriate method for recovery of costs
stranded as the result of wholesale competition. Under the FERC
policy proposal, costs stranded as a result of retail competition
would be subject to state commission review if the state commission
has the necessary statutory authority, and subject to FERC review
if the state commission does not have such authority. A final
decision is expected in late 1995 or early 1996.
The RIPUC has convened a task force of utilities, commercial and
industrial customers, regulators, and other interested parties to
prepare a report by May 1995 regarding restructuring the industry,
including the recovery of stranded investments.
New Accounting Standard
- -----------------------
In March 1995, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards No. 121, Accounting for
the Impairment of Long-Lived Assets and for Long-Lived Assets to Be
Disposed Of (FAS 121), effective for fiscal year 1996. This
<PAGE>
standard clarifies when and how to recognize an impairment of long-
lived assets. In addition, FAS 121 requires that all regulatory
assets be written off unless they continue to meet the criteria for
initially recording such regulatory assets. In order to be
initially recorded, a regulatory asset must have a high probability
of future recovery. However, once written off, a regulatory asset
can be restored if it again becomes probable of recovery. The
impact of this standard will be driven by the facts and
circumstances that exist when the standard is adopted and
thereafter.
Utility Plant Expenditures and Financings
- -----------------------------------------
Cash expenditures for utility plant totaled $18 million in the
first three months of 1995, including $3 million related to the
Company's share of the Manchester Street Station repowering
project. The funds necessary for utility plant expenditures were
primarily provided by net cash from operating activities, after the
payment of dividends, and the proceeds of long-term debt issues.
The Company issued $5 million of bonds during the first three
months of 1995 at an interest rate of 7.81 percent. The Company
plans to issue an additional $20 million of long-term debt during
1995.
<PAGE>
At March 31, 1995, the Company had $27 million of short-term
debt outstanding of which $19 million was in the form of commercial
paper borrowings. The Company currently has lines of credit with
banks totaling $41 million. There were no outstanding borrowings
under these lines of credit at March 31, 1995.
For the twelve-month period ending March 31, 1995, the ratio
of earnings to fixed charges was 2.14.
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
- --------------------------
Information concerning the Company's request to increase rates
filed with the Rhode Island Public Utilities Commission, discussed
in Part I of this report in Management's Discussion and Analysis of
Financial Condition and Results of Operations, is incorporated
herein by reference and made a part hereof.
The Company's title to properties which may be situated on
filled lands (including substations) had been called into question
by a 1991 Rhode Island Supreme Court case dealing with title to
filled land. The Company's title to the land on which the
Manchester Street Station property is located was cleared by
legislation in July 1992, by the Rhode Island legislature. The
Company challenged the 1991 ruling with respect to another parcel
of property. This issue was favorably resolved by an April 24,
1995, decision by the Rhode Island Supreme Court in The Greater
Providence Chamber of Commerce et al. v. State of Rhode Island.
Item 4. Submission of Matters to a Vote of Security-Holders
- ------------------------------------------------------------
On March 21, 1995, the Annual Meeting of Stockholders was
held. The following actions were taken by the unanimous vote of
the 1,132,487 shares having general voting rights represented at
the meeting:
The number of directors for the ensuing year was fixed at
nine.
The following were elected as directors:
Joan T. Bok
Stephen A. Cardi
Frances H. Gammell
Joseph J. Kirby
Robert L. McCabe
John W. Rowe
Richard P. Sergel
William E. Trueheart
John A. Wilson
Coopers & Lybrand was appointed as auditor for 1995.
<PAGE>
Item 6. Exhibits and Reports on Form 8-K
- -----------------------------------------
The Company is filing the following revised exhibit for
incorporation by reference into its registration statements on Form
S-3, Commission file Nos. 33-49455 and 33-50015.
12 Statement re computation of ratios
The Company is filing Financial Data Schedules.
The Company filed a report on Form 8-K dated March 1, 1995,
containing Item 5, Other Events.
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report on Form 10-Q for
the quarter ended March 31, 1995 to be signed on its behalf by the
undersigned thereunto duly authorized.
THE NARRAGANSETT ELECTRIC COMPANY
s/ Howard W. McDowell
Howard W. McDowell
Controller, Authorized Officer, and
Principal Accounting Officer
Date: May 11, 1995
Exhibit Index
<PAGE>
Exhibit Index
-------------
Exhibit Description Page
- ------- ----------- ----
12 Statement re computation of Filed herewith
ratios
27 Financial Data Schedule Filed herewith
Exhibit 12
<PAGE>
<TABLE>
THE NARRAGANSETT ELECTRIC COMPANY
Computation of Ratio of Earnings to Fixed Charges
(SEC Coverage)
(Unaudited)
<CAPTION>
12 Months
Ended
March 31, 1995 Years Ended December 31,
Actual -------------------------------------------------------------
(Unaudited) 1994 1993 1992 1991 1990
-------------- ---- ---- ---- ---- ----
(In Thousands)
<S> <C> <C> <C> <C> <C> <C>
Net Income $16,040 $14,589 $14,274 $21,052 $16,820 $17,599
- ----------
Add income taxes and fixed charges
- ----------------------------------
Current federal income taxes 906 1,020 2,183 4,608 1,558 7,624
Deferred federal income taxes 4,619 3,930 2,199 4,560 5,528 351
Investment tax credits - net (507) (508) (508) (507) (500) (504)
Interest on long-term debt 14,991 14,334 12,715 13,290 12,581 11,016
Interest on short-term debt and other 3,443 2,897 2,074 1,277 2,500 2,968
------- ------- ------- ------- ------- -------
Net earnings available for fixed charges $39,492 $36,262 $32,937 $44,280 $38,487 $39,054
------- ------- ------- ------- ------- -------
Fixed charges:
Interest on long-term debt $14,991 $14,334 $12,715 $13,290 $12,581 $11,016
Interest on short-term debt and other 3,443 2,897 2,074 1,277 2,500 2,968
------- ------- ------- ------- ------- -------
Total fixed charges $18,434 $17,231 $14,789 $14,567 $15,081 $13,984
======= ======= ======= ======= ======= =======
Ratio of earnings to fixed charges 2.14 2.10 2.23 3.04 2.55 2.79
- ----------------------------------
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> UT
<LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM THE BALANCE SHEET AND RELATED STATEMENTS OF INCOME,
RETAINED EARNINGS AND CASH FLOWS OF THE NARRAGANSETT ELECTRIC
COMPANY, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C> <C>
<FISCAL-YEAR-END> DEC-31-1995 DEC-31-1994
<PERIOD-END> MAR-31-1995 MAR-31-1994
<PERIOD-TYPE> 3-MOS 3-MOS
<BOOK-VALUE> PER-BOOK PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 502,734 0
<OTHER-PROPERTY-AND-INVEST> 0 0
<TOTAL-CURRENT-ASSETS> 98,609 0
<TOTAL-DEFERRED-CHARGES> 57,857 <F1> 0
<OTHER-ASSETS> 0 0
<TOTAL-ASSETS> 659,200 0
<COMMON> 56,624 0
<CAPITAL-SURPLUS-PAID-IN> 60,170 0
<RETAINED-EARNINGS> 98,220 0
<TOTAL-COMMON-STOCKHOLDERS-EQ> 215,014 0
0 0
36,500 0
<LONG-TERM-DEBT-NET> 193,873 0
<SHORT-TERM-NOTES> 26,950 <F2> 0
<LONG-TERM-NOTES-PAYABLE> 0 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0 0
<LONG-TERM-DEBT-CURRENT-PORT> 0 0
0 0
<CAPITAL-LEASE-OBLIGATIONS> 0 0
<LEASES-CURRENT> 0 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 186,863 0
<TOT-CAPITALIZATION-AND-LIAB> 659,200 0
<GROSS-OPERATING-REVENUE> 125,020 125,461
<INCOME-TAX-EXPENSE> 3,461 2,891
<OTHER-OPERATING-EXPENSES> 108,914 112,163
<TOTAL-OPERATING-EXPENSES> 112,375 115,054
<OPERATING-INCOME-LOSS> 12,645 10,407
<OTHER-INCOME-NET> (112) (509)
<INCOME-BEFORE-INTEREST-EXPEN> 12,533 9,898
<TOTAL-INTEREST-EXPENSE> 4,767 3,584
<NET-INCOME> 7,766 6,314
536 536
<EARNINGS-AVAILABLE-FOR-COMM> 7,230 5,778
<COMMON-STOCK-DIVIDENDS> 566 566
<TOTAL-INTEREST-ON-BONDS> 3,982 3,325
<CASH-FLOW-OPERATIONS> 17,460 7,803
<EPS-PRIMARY> 0 <F3> 0 <F3>
<EPS-DILUTED> 0 <F3> 0 <F3>
<FN>
<F1> Total deferred charges includes other assets.
<F2> Short-term notes includes commercial paper obligations and notes
payable to associated companies.
<PAGE>
<F3> Per share data is not relevant because the Company's common stock
is wholly owned by New England Electric System.
</FN>
