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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: July 3, 1997
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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Industry Restructuring Update
As previously reported, the Massachusetts settlement and the
Rhode Island statute and a related settlement covering customer
choice and electric utility restructuring provide for full
recovery of the costs of generating assets and oil and gas
related assets (including regulatory assets) not recoverable
through the divestiture of New England Power Company's (NEP)
generating business. NEP is a subsidiary of New England Electric
System (NEES). The Massachusetts Offer of Settlement was signed
by Massachusetts Electric Company (a retail subsidiary of NEES),
NEP, the Massachusetts Attorney General and the Massachusetts
Division of Energy Resources and was approved by the
Massachusetts Department of Public Utilities (MDPU) in February
1997. The Rhode Island Offer of Settlement was signed by The
Narragansett Electric Company (a retail subsidiary of NEES), NEP,
the Rhode Island Public Utilities Commission (RIPUC) and the
Rhode Island Division of Public Utilities and Carriers. Federal
Energy Regulatory Commission (FERC) approval is also required for
the Massachusetts and Rhode Island stranded cost recovery. The
Massachusetts and Rhode Island Settlements were filed with the
FERC at the end of May 1997. On July 11, 1997, a FERC
administrative law judge certified the Settlements to the full
Commission. If accepted by the FERC, the Settlements will
complete the regulatory proceedings necessary to implement retail
access and recover stranded costs for the companies in
Massachusetts and Rhode Island.
On July 3 and 7, 1997, the Governor of Rhode Island signed
into law bills further implementing utility restructuring in
Rhode Island. The Securitization Act establishes a framework at
the RIPUC for utilities to seek approval to securitize stranded
costs through the issuance of transition bonds. The 1997
Amendments to the Utility Restructuring Act bill changes the Act
so that utilities will not have to transfer their transmission
assets to another company and makes other technical amendments.
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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: July 14, 1997
