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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: October 11, 1995
THE NARRAGANSETT ELECTRIC COMPANY
(exact name of registrant as specified in charter)
Rhode Island 1-7471 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) 784-7000
(Registrant's telephone number, including area code)
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Item 5. Other Events
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As previously reported, The Narragansett Electric Company
(the Company), a subsidiary of New England Electric System, and
the Rhode Island Division of Public Utilities and Carriers
(represented by the Rhode Island Attorney General), agreed on a
settlement to the Company's rate case, which was subject to the
approval of the Rhode Island Public Utilities Commission (RIPUC).
This settlement would have increased the Company's revenue
requirement by $17.8 million.
The RIPUC has indicated that it would approve the settlement
if the Company and the other parties to the rate case were to
agree to remove a provision in the settlement which called for a
change in the method of accounting for tax benefits associated
with cost of removal tax deductions realized by the Company. The
parties had agreed that the Company would record deferred taxes
for such tax benefits instead of flowing them through to
customers. The RIPUC has asked the Company to continue the flow
through accounting for such tax benefits that the Commission
required in the past. The Company filed an amended settlement
with the RIPUC on October 11, 1995 which complies with the RIPUC
request. The impact of the amendment to the settlement would be
to decrease the Company's revenue requirement by $2.9 million,
with no expected impact on earnings. Therefore, the settlement
as amended would increase the Company's revenue requirement by
$14.9 million.
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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/Alfred D. Houston
By ________________________________
Alfred D. Houston
Vice President and Treasurer
Date: October 11, 1995
