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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: November 25, 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
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On November 25, 1997, the Federal Energy Regulatory
Commission (FERC) approved a settlement agreement with Rhode
Island parties including The Narragansett Electric Company (the
Company), a subsidiary of New England Electric System (NEES),
regarding recovery of stranded costs from the NEES companies'
Rhode Island customers. The FERC Order also requires the NEES
companies to amend the settlement within 30 days to clarify that
the settlement does not affect the rights of non-settling
parties. The Rhode Island settlement agreement is designed to
implement Rhode Island's Utility Restructuring Act of 1996. As
contemplated by the Rhode Island settlement, the Rhode Island
Public Utilities Commission is expected to accelerate retail
access for all Rhode Island customers from July 1, 1998 to the
first quarter of 1998.
This Form 8-K contains statements that may be considered
forward looking statements as defined under the securities laws
regarding recovery of stranded assets and regulatory matters.
Actual results may differ materially. While the NEES companies
believe that the previously passed Rhode Island legislation, the
previously disclosed sale agreement with USGen New England, Inc.
and other developments constitute substantial progress in
resolving the uncertainty regarding the impact from industry
restructuring, significant risks remain. These include, but are
not limited to: (i) the potential that ultimately the Rhode
Island settlement will not be implemented in the manner
anticipated by the Company and (ii) the possibility of federal
legislation that would increase the risks above those contained
in the settlement and statute. The major risk factors affecting
the Company relate to the possibility of adverse regulatory or
judicial decisions or legislation which limit the level of
revenues the Company is allowed to charge for its services or
affect the costs the Company incurs.
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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: December 1, 1997
