<PAGE 1>
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549-1004
FORM 10-Q
(Mark One)
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1995
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ________________ to ________________
Commission File Number 2-7749
COMMONWEALTH ELECTRIC COMPANY
(Exact name of registrant as specified in its charter)
Massachusetts 04-1659070
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
One Main Street, Cambridge, Massachusetts 02142-9150
(Address of principal executive offices) (Zip Code)
(617) 225-4000
(Registrant's telephone number, including area code)
(Former name, address and fiscal year, if changed since last report.)
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 [ ]
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Outstanding at
Class of Common Stock November 1, 1995
Common Stock, $25 par value 2,043,972 shares
The Company meets the conditions set forth in General Instruction H(1)(a) and
(b) of Form 10-Q as a wholly-owned subsidiary and is therefore filing this
Form with the reduced disclosure format.
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PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
COMMONWEALTH ELECTRIC COMPANY
CONDENSED BALANCE SHEETS
SEPTEMBER 30, 1995 AND DECEMBER 31, 1994
ASSETS
(Unaudited)
September 30, December 31,
1995 1994
(Dollars in Thousands)
PROPERTY, PLANT AND EQUIPMENT, at original cost $516 137 $496 166
Less - Accumulated depreciation 152 337 143 877
363 800 352 289
Add - Construction work in progress 2 298 5 216
366 098 357 505
INVESTMENTS
Equity in nuclear electric power company 625 654
Other 14 14
639 668
CURRENT ASSETS
Cash 1 547 1 637
Accounts receivable -
Affiliates 3 246 3 713
Customers 37 832 37 862
Unbilled revenues 5 367 8 899
Prepaid property taxes 4 265 2 739
Inventories and other 5 889 6 032
58 146 60 882
DEFERRED CHARGES 87 524 57 831
$512 407 $476 886
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COMMONWEALTH ELECTRIC COMPANY
CONDENSED BALANCE SHEETS
SEPTEMBER 30, 1995 AND DECEMBER 31, 1994
CAPITALIZATION AND LIABILITIES
(Unaudited)
September 30, December 31,
1995 1994
(Dollars in Thousands)
CAPITALIZATION
Common Equity -
Common stock, $25 par value -
Authorized and outstanding -
2,043,972 shares wholly-owned by
Commonwealth Energy System (Parent) $ 51 099 $ 51 099
Amounts paid in excess of par value 97 112 97 112
Retained earnings 19 436 15 350
167 647 163 561
Long-term debt, less current sinking
fund requirements 156 773 157 817
324 420 321 378
CURRENT LIABILITIES
Interim Financing -
Notes payable to banks 5 350 6 400
Advances from affiliates 15 605 200
20 955 6 600
Other Current Liabilities -
Current sinking fund requirements 1 053 1 053
Accounts payable -
Affiliates 8 722 7 716
Other 33 386 31 911
Accrued taxes -
Income 18 545 8 049
Local property and other 4 925 3 721
Other 11 397 13 691
78 028 66 141
98 983 72 741
DEFERRED CREDITS
Accumulated deferred income taxes 43 649 42 074
Unamortized investment tax credits 7 670 7 994
Other 37 685 32 699
89 004 82 767
COMMITMENTS AND CONTINGENCIES
$512 407 $476 886
See accompanying notes.
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COMMONWEALTH ELECTRIC COMPANY
CONDENSED STATEMENTS OF INCOME AND RETAINED EARNINGS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994
(Unaudited)
Three Months Ended Nine Months Ended
1995 1994 1995 1994
(Dollars in Thousands)
ELECTRIC OPERATING REVENUES $112 086 $119 559 $322 520 $336 293
OPERATING EXPENSES
Electricity purchased for
resale, transmission and fuel 71 548 77 135 210 929 222 068
Other operation and maintenance 19 592 20 159 59 589 61 954
Depreciation 4 102 3 999 12 307 11 997
Taxes -
Income 4 191 4 264 8 556 8 285
Local property 1 169 1 388 3 933 3 912
Payroll and other 599 595 2 239 2 223
101 201 107 540 297 553 310 439
OPERATING INCOME 10 885 12 019 24 967 25 854
OTHER INCOME (EXPENSE) 25 (1 423) 1 256 (1 237)
INCOME BEFORE INTEREST CHARGES 10 910 10 596 26 223 24 617
INTEREST CHARGES
Long-term debt 3 521 3 620 10 562 10 710
Other interest charges 741 123 2 059 348
Allowance for borrowed funds
used during construction (59) (73) (295) (226)
4 203 3 670 12 326 10 832
NET INCOME 6 707 6 926 13 897 13 785
RETAINED EARNINGS -
Beginning of period 14 773 14 823 15 350 15 118
Dividends on common stock (2 044) (2 044) (9 811) (9 198)
End of period $ 19 436 $ 19 705 $ 19 436 $ 19 705
See accompanying notes.
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COMMONWEALTH ELECTRIC COMPANY
CONDENSED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994
(Unaudited)
1995 1994
(Dollars in Thousands)
OPERATING ACTIVITIES
Net income $ 13 897 $ 13 785
Effects of noncash items -
Depreciation and amortization 14 699 13 790
Deferred income taxes and investment
tax credits, net 3 305 606
Change in working capital, exclusive of cash,
advances to affiliates and interim financing 14 533 11 893
Buy-out of power contract (25 500) -
Fuel charge stabilization deferral (6 033) (11 470)
All other operating items 680 (5 165)
Net cash provided by operating activities 15 581 23 439
INVESTING ACTIVITIES
Additions to property, plant and equipment
(exclusive of AFUDC) (18 876) (14 675)
Allowance for borrowed funds used during
construction (295) (226)
Payment from affiliates - 570
Net cash used for investing activities (19 171) (14 331)
FINANCING ACTIVITIES
Payment of short-term borrowings (1 050) -
Advances from affiliates 15 405 -
Payment of dividends (9 811) (9 198)
Sinking funds payments (1 044) (1 044)
Net cash provided by (used for) financing activities 3 500 (10 242)
Net decrease in cash (90) (1 134)
Cash at beginning of period 1 637 2 794
Cash at end of period $ 1 547 $ 1 660
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid (received) during the period for:
Interest (net of capitalized amounts) $ 13 207 $ 11 759
Income taxes $ (2 808) $ 2 163
See accompanying notes.
<PAGE>
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COMMONWEALTH ELECTRIC COMPANY
NOTES TO CONDENSED FINANCIAL STATEMENTS
(1) Accounting Policies
Commonwealth Electric Company (the Company) is a wholly-owned subsid-
iary of Commonwealth Energy System. The parent company is referred to in
this report as the "System" and, together with its subsidiaries, is
collectively referred to as "the system."
The Company's significant accounting policies are described in Note 1
of Notes to Financial Statements included in its 1994 Annual Report on
Form 10-K filed with the Securities and Exchange Commission. For interim
reporting purposes, the Company follows these same basic accounting
policies but considers each interim period as an integral part of an
annual period and makes allocations of certain expenses to interim periods
based upon estimates of such expenses for the year.
The Company has established various regulatory assets in cases where
the Massachusetts Department of Public Utilities (DPU) and/or the Federal
Energy Regulatory Commission (FERC) have permitted or are expected to
permit recovery of specific costs over time. Similarly, certain regula-
tory liabilities established by the Company are required to be refunded to
its customers over time. In March 1995, the Financial Accounting Stan-
dards 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" (SFAS 121). SFAS 121 imposes stricter criteria
for regulatory assets by requiring that such assets be probable of future
recovery at each balance sheet date. Based on the current regulatory
framework, the Company accounts for the economic effects of regulation in
accordance with the provisions of SFAS No. 71, "Accounting for the Effects
of Certain Types of Regulation" and does not expect that the adoption of
SFAS 121, which the Company will adopt on January 1, 1996, will have a
material impact on its financial position or results of operations.
However, this conclusion may change in the future as changes are made in
the current regulatory framework or as competitive factors influence
wholesale and retail pricing in this industry. The principal regulatory
assets included in deferred charges were as follows:
September 30, December 31,
1995 1994
(Dollars in Thousands)
Purchased power contract buy-out $24 873 $ -
Fuel charge stabilization 22 671 16 638
Postretirement benefit costs
including pensions 12 406 11 215
Yankee Atomic unrecovered plant
and decommissioning costs 8 741 10 204
Pilgrim nuclear plant litigation costs 6 733 7 001
Cannon Street generating plant
abandonment, net 4 394 4 400
Conservation and load management costs 3 129 3 659
Other 849 1 049
Total regulatory assets $83 796 $54 166
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COMMONWEALTH ELECTRIC COMPANY
The regulatory liabilities included in deferred credits - other,
principally related to taxes, amounted to $11 million and $3.7 million at
September 30, 1995 and December 31, 1994, respectively.
Income tax expense is recorded using the statutory rates in effect
applied to book income subject to tax recorded in the interim period.
The unaudited financial statements for the periods ended September 30,
1995 and 1994 reflect, in the opinion of the Company, all adjustments
(consisting of only normal recurring accruals) necessary to summarize
fairly the results for such periods. In addition, certain prior period
amounts are reclassified from time to time to conform with the presenta-
tion used in the current period's financial statements.
The results for interim periods are not necessarily indicative of
results for the entire year because of seasonal variations in the con-
sumption of energy.
(2) Commitments and Contingencies
(a) Construction and Financing Programs
The Company is engaged in a continuous construction program presently
estimated at $141 million for the five-year period 1995 through 1999. Of
that amount, $27.1 million is estimated for 1995. As of September 30,
1995, the Company's construction expenditures amounted to approximately
$19.2 million, including an allowance for funds used during construction.
The Company expects to finance these expenditures on an interim basis with
internally generated funds and short-term borrowings which are ultimately
expected to be repaid with the proceeds from sales of long-term debt and
equity securities.
The program is subject to periodic review and revision due to factors
such as changes in business conditions, rates of customer growth, effects
of inflation, maintenance of reliable and safe service, equipment delivery
schedules, licensing delays, availability and cost of capital and environ-
mental regulations.
(b) Decommissioning of Yankee Atomic Nuclear Power Plant
In February 1992, the Board of Directors of Yankee Atomic Electric
Company (Yankee Atomic) agreed to permanently discontinue power operation
of its plant and decommission the Yankee Nuclear Power Station (the
plant). The Company's 2.5% investment in Yankee Atomic is approximately
$625,000. The most recent cost estimate to permanently shut down the
plant is approximately $350 million. The Company's share of this liabili-
ty is $8.7 million and is currently reflected in the accompanying balance
sheets as a liability and corresponding regulatory asset.
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COMMONWEALTH ELECTRIC COMPANY
Item 2. Management's Discussion and Analysis of Results of Operations
The following is a discussion of certain significant factors which have
affected operating revenues, expenses and net income during the periods
included in the accompanying condensed statements of income. This discussion
should be read in conjunction with the Notes to Condensed Financial Statements
appearing elsewhere in this report.
A summary of the period to period changes in the principal items included
in the condensed statements of income for the three and nine months ended
September 30, 1995 and 1994 and unit sales for these periods is shown below:
Three Months Ended Nine Months Ended
September 30, September 30,
1995 and 1994 1995 and 1994
Increase (Decrease)
(Dollars in Thousands)
Electric Operating Revenues $ (7 473) (6.3)% $(13 773) (4.1)%
Operating Expenses -
Electricity purchased for resale,
transmission and fuel (5 587) (7.2) (11 139) (5.0)
Other operation and maintenance (567) (2.8) (2 365) (3.8)
Depreciation 103 2.6 310 2.6
Taxes -
Federal and state income (73) (1.7) 271 3.3
Local property and other (215) (10.8) 37 0.6
(6 339) (5.9) (12 886) (4.2)
Operating Income (1 134) (9.4) (887) (3.4)
Other Income 1 448 101.8 2 493 201.5
Income Before Interest Charges 314 3.0 1 606 6.5
Interest Charges 533 14.5 1 494 13.8
Net Income $ (219) (3.2) $ 112 0.8
Unit Sales (Megawatthours or MWH)
Retail 12 376 1.4 (19 673) (0.8)
Wholesale (701) (0.3) (331 248) (34.1)
Total unit sales 11 675 1.0 (350 921) (10.0)
The following is a summary of unit sales (in MWH) for the periods
indicated:
Three Months Nine Months
Period Ended Total Retail Wholesale Total Retail Wholesale
September 30, 1 142 473 920 218 222 255 3 150 097 2 509 351 640 746
1995
September 30, 1 130 798 907 842 222 956 3 501 018 2 529 024 971 994
1994<PAGE>
<PAGE 9>
COMMONWEALTH ELECTRIC COMPANY
Operating Revenues, Electricity Purchased for Resale, Transmission and Fuel
Operating revenues for the nine-month period ended September 30, 1995
decreased by $13.8 million (4.1%) from the corresponding period in 1994 due to
lower unit sales, primarily wholesale sales. For the nine-month period,
retail unit sales declined only slightly due to a 3.4% decrease in sales to
residential customers reflecting extremely mild weather in the first quarter
of this year as compared to the record cold experienced during the same period
of 1994. Residential sales during the second and third quarters of 1995 were
virtually unchanged compared to the same periods in 1994. Somewhat offsetting
the decline in residential sales in the nine-month period were unit sales to
commercial customers that increased 2%, including a 5.3% and 3.3% increase in
the second and third quarters, respectively. The decline in wholesale sales
for both the three and nine-month periods reflects the reduced availability of
power from several of the Company's long-term supply sources. Fluctuations in
the level of wholesale sales have little, if any, impact on net income. Third
quarter revenues declined $7.5 million in 1995 despite a 1.4% retail unit
sales increase, due primarily to the lower cost of purchased power and a
slight decline in wholesale sales.
The current three and nine-month periods reflect significantly lower
power purchases from Canal Electric Company's (Canal) Unit 1 due to a combina-
tion of scheduled maintenance and other repairs which kept the unit out of
service until August 1995. The reduced availability of Canal Unit 2 and the
successful renegotiation of a contract with an independent power producer
(IPP) that defers purchases for a six-year period were also factors. Also, in
January 1995, the Company terminated a long-term power contract with another
IPP through a buy-out arrangement which has reduced power costs and will pro-
vide greater savings in the future. Somewhat offsetting these components were
increased power purchases from Seabrook and several other power producers.
The Company has received approval from the Massachusetts Department of
Public Utilities (DPU) to recover in revenues certain current costs associated
with conservation and load management (C&LM) programs through the operation of
a Conservation Charge decimal on a dollar-for-dollar basis. To the extent
that these expenses increase or decrease from period to period based on
customer participation, a corresponding change will occur in revenues. In
1995, the collection of these expenses in revenues declined $446,000 and $1.8
million in the current quarter and nine-month period when compared to the same
periods last year.
Historically, revenues collected through base rates have been designed to
reimburse the Company for all costs of operation other than fuel, the energy
portion of purchased power, transmission and C&LM costs, and provide a fair
return on capital invested in the business. However, as a result of a DPU-
mandated recovery mechanism implemented in July 1991 for capacity-related
costs associated with certain long-term purchased power contracts, the Company
has experienced a revenue excess or shortfall when unit sales and/or the costs
recoverable in base rates vary from test-period levels. This issue, which has
had a significant impact on net income, was addressed in a settlement agree-
ment approved by the DPU in May 1995. (Refer to the "Rate Settlement Agree-
ment" section for additional details.) During the current three-month period,
an overcollection of $853,000 associated with these capacity-related costs was
deferred pursuant to the settlement agreement. For the same period in 1994,
revenues included $796,000 in excess of such capacity-related costs. As a
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COMMONWEALTH ELECTRIC COMPANY
result, net income was approximately $500,000 lower in the current quarter.
During the current nine-month period, there was an undercollection of $1.2
million of which $218,000 was deferred in accordance with the settlement
agreement resulting in $969,000 of capacity-related costs not recovered in
revenues. For the same period in 1994, capacity-related costs exceeded
revenues by approximately $1.5 million. As a result, net income increased by
approximately $330,000 for the current nine-month period.
Other Operation and Maintenance
Other operation and maintenance declined in the current quarter and nine-
month period due to lower C&LM program costs ($446,000 and $1.8 million) and a
decline in maintenance expense of $21,000 and $336,000 (primarily transmission
and distribution facilities). These decreases were offset, in part, in the
current quarter and nine-month period, respectively, by higher insurance and
benefit costs ($346,000 and $906,000), primarily reflecting the full recogni-
tion of expenses relating to postretirement benefits other than pensions and
amortization of previously deferred postretirement benefits costs that were
part of the rate settlement agreement approved by the DPU in May 1995. Also,
legal fees associated with power contract arbitration proceedings ($446,000),
incurred in the current nine-month period, will be recovered in the month of
October 1995.
Depreciation and Taxes
Depreciation expense increased slightly in the current three and nine-
month periods due to a higher level of depreciable property, plant and equip-
ment. The changes in federal and state income taxes were due to variations in
the levels of pretax income. Local property and other taxes increased
slightly during the current nine-month period mainly due to higher rates and
assessments offset, in part, by a $201,000 adjustment to the 1995 property tax
estimate. The decrease in local property and other taxes during the current
three-month period reflects the adjustment to the estimate.
Other Income and Interest Charges
The increase in other income for the current nine-month period was due
primarily to the partial reversal of a contingency reserve related to certain
costs associated with the Company's energy conservation program, the recovery
of which was subsequently approved by the DPU. The increase in the current
quarter was due to the absence of the reserve established in the same quarter
last year.
The increases in total interest charges during the current three and
nine-month periods reflected increases of $618,000 and $1.7 million, respec-
tively, in interest on short-term borrowings, reflecting a significantly
higher average level of bank borrowings in 1995 and a higher average rate
(6.1%) compared to 4.5% last year.
Regulatory Matters
Electric Industry Restructuring
On August 16, 1995, the DPU issued an order calling for the restructuring
of the electric utility industry in Massachusetts. The stated purpose of the
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COMMONWEALTH ELECTRIC COMPANY
restructuring effort is to allow customers more flexibility in choosing their
electric service provider and to develop an efficient industry structure and
regulatory framework that minimizes long-term costs to consumers while
maintaining the safety and reliability of electric services with minimum
impact on the environment. The electric utility industry will ultimately be
functionally separated into three segments to help meet this objective:
generation, distribution and transmission. A coalition of state agencies,
businesses, environmental groups and utility companies, including the Company
and its affiliate, Cambridge Electric Light Company, worked together sharing
ideas and opinions and proposed eighteen principles for a restructured
electric utility industry. The DPU agreed with several of the coalition's
suggestions and, in its order, identified the following seven principles:
(1) provide the broadest possible customer choice;
(2) provide all customers with an opportunity to share in the benefits of
increased competition;
(3) ensure full and fair competition in power generation markets;
(4) functionally separate generation, transmission and distribution
services;
(5) ensure electric service to all customers, including low-income
customers;
(6) support and further the goals of environmental regulation; and
(7) provide incentives for better utility performance.
Also, five principles to guide the transition from a regulated to a
competitive industry structure were established in the order. These princi-
ples are:
(1) honor existing commitments;
(2) separate component costs of electricity on customer bills;
(3) seek to provide near-term rate relief;
(4) maintain conservation programs; and
(5) ensure that the transition is orderly and expeditious while minimiz-
ing customer confusion.
In addition, the order cites that utilities should have a reasonable
opportunity to recover stranded costs associated with commitments previously
incurred to provide reliable electric service.
All utilities are required to submit proposals detailing how they plan to
move into a competitive market structure. The Company's and Cambridge
Electric's proposal is due by August 16, 1996.
<PAGE>
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COMMONWEALTH ELECTRIC COMPANY
Rate Settlement Agreement
In May 1995, the DPU approved a settlement proposal sponsored jointly by
the Company and the Attorney General of Massachusetts which resolved issues
related to cost of service, rates, accounting matters and generating unit
performance reviews. The Company's settlement:
(1) implements a $2.7 million annual retail base rate decrease effective
May 1, 1995 including its share of excess deferred tax reserves
related to Seabrook Unit 1 which Canal refunded to the Company in
May. Further, the settlement imposes a moratorium on retail rate
filings until October 1998;
(2) limits the Company's return on equity, as defined in the settlement,
for the period through December 31, 1997;
(3) terminates several 1987-1994 generating unit performance review
proceedings pending before the DPU;
(4) amends the Company's fuel charge stabilization mechanism established
on April 1, 1994 to include the deferral (without carrying charges)
of certain long-term purchased power and transmission capacity costs
within the original limits established for the fuel charge stabiliza-
tion deferral ($16 million in any given calendar year and $40 million
over the life of the mechanism);
(5) requires the Company to fully expense costs relating to postretire-
ment benefits other than pensions in accordance with Statement of
Financial Accounting Standards No. 106 and amortize the deferred
balance of $8.6 million over a ten-year period;
(6) provides eligible Economic Development Rate customers with a discount
of up to 30% but also requires these customers to provide the Company
with a five-year notice if they intend to self-generate or acquire
electricity from another provider; and
(7) prohibits the Company from seeking recovery of the costs incurred in
realizing costs savings through a 1993 work force reduction and
restructuring, totaling approximately $3 million.
The Company's management is encouraged by the support provided through
the Office of the Attorney General and believes that this settlement will
eliminate the need for potentially costly litigation and regulatory proceed-
ings and, by moderating rate impacts and enabling the Company to remain
competitive in a changing environment, the settlement is in the best interest
of the Company and its customers.
<PAGE>
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COMMONWEALTH ELECTRIC COMPANY
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
The Company is subject to legal claims and matters arising from
its course of business.
Item 5. Other Information
Effective October 1, 1995, John A. Whalen, formerly the Company's
Comptroller, was appointed Vice President and General Manager of
COM/Energy Services Company, an affiliate of the Company. James D.
Rappoli, the Company's Financial Vice President and Treasurer,
assumed Mr. Whalen's former duties as Comptroller.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
Exhibit 27 - Financial Data Schedule
Filed herewith as Exhibit 1 is the Financial Data Schedule for the
nine months ended September 30, 1995.
Filed herewith as Exhibit 2 is the restated Financial Data Sched-
ule for the nine months ended September 30, 1994.
(b) Reports on Form 8-K
No reports on Form 8-K were filed during the three months ended
September 30, 1995.
<PAGE>
<PAGE 14>
COMMONWEALTH ELECTRIC COMPANY
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
COMMONWEALTH ELECTRIC COMPANY
(Registrant)
Principal Financial and
Accounting Officer:
Date: November 13, 1995 JAMES D. RAPPOLI
James D. Rappoli,
Financial Vice President
and Treasurer
<TABLE> <S> <C>
<ARTICLE> UT
<LEGEND>
This schedule contains summary financial information extracted from the
balance sheet, statement of income and statement of cash flows contained in
Form 10-Q of Commonwealth Electric Company for the nine months ended September
30, 1995 and is qualified in its entirety by reference to such financial
statements.
</LEGEND>
<CIK> 0000071222
<NAME> COMMONWEALTH ELECTRIC COMPANY
<MULTIPLIER> 1,000
<S> <C>
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<PERIOD-TYPE> 9-MOS
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 366,098
<OTHER-PROPERTY-AND-INVEST> 639
<TOTAL-CURRENT-ASSETS> 58,146
<TOTAL-DEFERRED-CHARGES> 87,524
<OTHER-ASSETS> 0
<TOTAL-ASSETS> 512,407
<COMMON> 51,099
<CAPITAL-SURPLUS-PAID-IN> 97,112
<RETAINED-EARNINGS> 19,436
<TOTAL-COMMON-STOCKHOLDERS-EQ> 167,647
0
0
<LONG-TERM-DEBT-NET> 156,773
<SHORT-TERM-NOTES> 20,955
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<CAPITAL-LEASE-OBLIGATIONS> 0
<LEASES-CURRENT> 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 165,979
<TOT-CAPITALIZATION-AND-LIAB> 512,407
<GROSS-OPERATING-REVENUE> 322,520
<INCOME-TAX-EXPENSE> 8,556
<OTHER-OPERATING-EXPENSES> 288,997
<TOTAL-OPERATING-EXPENSES> 297,553
<OPERATING-INCOME-LOSS> 24,967
<OTHER-INCOME-NET> 1,256
<INCOME-BEFORE-INTEREST-EXPEN> 26,223
<TOTAL-INTEREST-EXPENSE> 12,326
<NET-INCOME> 13,897
0
<EARNINGS-AVAILABLE-FOR-COMM> 13,897
<COMMON-STOCK-DIVIDENDS> 9,811
<TOTAL-INTEREST-ON-BONDS> 10,562
<CASH-FLOW-OPERATIONS> 15,581
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> UT
<LEGEND>
This schedule contains restated summary financial information extracted from
the balance sheet, statement of income and statement of cash flows contained
in Form 10-Q of Commonwealth Electric Company for the nine months ended
September 30, 1994 and is qualified in its entirety by reference to such
financial statements.
</LEGEND>
<RESTATED>
<CIK> 0000071222
<NAME> COMMONWEALTH ELECTRIC COMPANY
<MULTIPLIER> 1,000
<S> <C>
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> SEP-30-1994
<PERIOD-TYPE> 9-MOS
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 352,219
<OTHER-PROPERTY-AND-INVEST> 652
<TOTAL-CURRENT-ASSETS> 61,327
<TOTAL-DEFERRED-CHARGES> 49,178
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<TOTAL-ASSETS> 463,376
<COMMON> 51,099
<CAPITAL-SURPLUS-PAID-IN> 97,112
<RETAINED-EARNINGS> 19,705
<TOTAL-COMMON-STOCKHOLDERS-EQ> 167,916
0
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0
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0
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</TABLE>
