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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 June 30, 1996
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 August 1, 1996
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
JUNE 30, 1996 AND DECEMBER 31, 1995
ASSETS
(Dollars in thousands)
June 30, December 31,
1996 1995
(Unaudited)
PROPERTY, PLANT AND EQUIPMENT, at original cost $531 011 $520 714
Less - Accumulated depreciation 160 503 154 170
370 508 366 544
Add - Construction work in progress 915 1 912
371 423 368 456
INVESTMENTS
Equity in nuclear electric power company 621 590
Other 14 14
635 604
CURRENT ASSETS
Cash 1 516 1 430
Accounts receivable -
Affiliates 6 453 2 570
Customers 41 122 41 951
Unbilled revenues 8 421 5 795
Prepaid property taxes - 2 843
Inventories and other 5 210 5 262
62 722 59 851
DEFERRED CHARGES 77 028 77 916
$511 808 $506 827
See accompanying notes.
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COMMONWEALTH ELECTRIC COMPANY
CONDENSED BALANCE SHEETS
JUNE 30, 1996 AND DECEMBER 31, 1995
CAPITALIZATION AND LIABILITIES
(Dollars in thousands)
June 30, December 31,
1996 1995
(Unaudited)
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 20 000 20 708
168 211 168 919
Long-term debt, less current sinking
fund requirements 153 228 154 275
321 439 323 194
CURRENT LIABILITIES
Interim Financing -
Notes payable to banks 24 075 17 300
Advances from affiliates 12 465 1 545
36 540 18 845
Other Current Liabilities -
Current sinking fund requirements 3 553 3 553
Accounts payable -
Affiliates 6 187 8 987
Other 30 045 32 699
Accrued taxes -
Local property and other 113 3 068
Income 17 477 18 721
Other 12 089 11 742
69 464 78 770
106 004 97 615
DEFERRED CREDITS
Accumulated deferred income taxes 45 420 44 211
Unamortized investment tax credits 7 343 7 559
Other 31 602 34 248
84 365 86 018
COMMITMENTS AND CONTINGENCIES
$511 808 $506 827
See accompanying notes.
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COMMONWEALTH ELECTRIC COMPANY
CONDENSED STATEMENTS OF INCOME AND RETAINED EARNINGS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 1996 AND 1995
(Dollars in thousands)
(Unaudited)
Three Months Ended Six Months Ended
1996 1995 1996 1995
ELECTRIC OPERATING REVENUES $104 958 $ 97 704 $222 854 $211 302
OPERATING EXPENSES
Electricity purchased for
resale, transmission and fuel 66 304 62 285 145 534 140 248
Other operation and maintenance 20 263 20 372 40 376 39 997
Depreciation 4 290 4 103 8 580 8 205
Taxes -
Income 2 910 1 701 5 906 4 365
Local property 1 457 1 382 2 891 2 764
Payroll and other 645 630 1 685 1 640
95 869 90 473 204 972 197 219
OPERATING INCOME 9 089 7 231 17 882 14 083
OTHER INCOME (EXPENSE) (289) (40) (261) 1 230
INCOME BEFORE INTEREST CHARGES 8 800 7 191 17 621 15 313
INTEREST CHARGES
Long-term debt 3 492 3 520 6 984 7 041
Other interest charges 588 943 1 092 1 318
Allowance for borrowed funds
used during construction (21) (123) (69) (236)
4 059 4 340 8 007 8 123
NET INCOME 4 741 2 851 9 614 7 190
RETAINED EARNINGS -
Beginning of period 16 792 16 214 20 708 15 350
Dividends on common stock (1 533) (4 292) (10 322) (7 767)
End of period $ 20 000 $ 14 773 $ 20 000 $ 14 773
See accompanying notes.
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COMMONWEALTH ELECTRIC COMPANY
CONDENSED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1996 AND 1995
(Dollars in thousands)
(Unaudited)
1996 1995
OPERATING ACTIVITIES
Net income $ 9 614 $ 7 190
Effects of noncash items -
Depreciation and amortization 10 782 9 597
Deferred income taxes and investment
tax credits, net 273 3 221
Change in working capital, exclusive of cash
and interim financing (12 091) 2 484
Buy-out of power contract - (25 500)
Fuel charge stabilization deferral 970 (5 997)
All other operating items (5 274) (1 467)
Net cash (used for) provided by operating activities 4 274 (10 472)
INVESTING ACTIVITIES
Additions to property, plant and equipment
(exclusive of AFUDC) (10 445) (12 458)
Allowance for borrowed funds used during
construction (69) (236)
Net cash used for investing activities (10 514) (12 694)
FINANCING ACTIVITIES
Proceeds from short-term borrowings 6 775 1 500
Proceeds from affiliates 10 920 29 810
Payment of dividends (10 322) (7 767)
Sinking funds payments (1 047) (1 047)
Net cash provided by financing activities 6 326 22 496
Net increase (decrease) in cash 86 (670)
Cash at beginning of period 1 430 1 637
Cash at end of period $ 1 516 $ 967
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid (received) during the period for:
Interest (net of capitalized amounts) $ 7 791 $ 7 792
Income taxes $ 6 159 $ (1 287)
See accompanying notes.
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COMMONWEALTH ELECTRIC COMPANY
NOTES TO CONDENSED FINANCIAL STATEMENTS
(1) General Information
Commonwealth Electric Company (the Company) is a wholly-owned
subsidiary 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 System is an exempt public
utility holding company under the provisions of the Public Utility Holding
Company Act of 1935 and, in addition to its investment in the Company, has
interests in other utility and several non-regulated companies.
The Company has 855 regular employees including 561 (66%) represented
by three collective bargaining units. New agreements were reached earlier
this year with two bargaining units (representing approximately 56% of
regular employees) that were scheduled to expire on October 1, 1996 and
November 1, 1997. These new agreements will remain in effect until 2002
and 2001, respectively.
(2) Significant Accounting Policies
(a) Principles of Accounting
The Company's significant accounting policies are described in Note 2
of Notes to Financial Statements included in its 1995 Annual Report on
Form 10-K filed with the Securities and Exchange Commission. For interim
reporting purposes, the Company follows these same basic accounting poli-
cies 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 unaudited financial statements for the periods ended June 30, 1996
and 1995 reflect, in the opinion of the Company, all adjustments (consist-
ing 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 presentation used in
the current period's financial statements.
Income tax expense is recorded using the statutory rates in effect
applied to book income subject to tax recorded in the interim period.
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.
(b) Regulatory Assets and Liabilities
The Company is regulated as to rates, accounting and other matters by
various authorities including the Federal Energy Regulatory Commission
(FERC) and the Massachusetts Department of Public Utilities (DPU).
Based on the current regulatory framework, the Company accounts for
the economic effects of regulation in accordance with the provisions of
Statement of Financial Accounting Standards (SFAS) No. 71, "Accounting for
the Effects of Certain Types of Regulation." The Company has established
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COMMONWEALTH ELECTRIC COMPANY
various regulatory assets in cases where the DPU and/or the FERC have
permitted or are expected to permit recovery of specific costs over time.
Similarly, the regulatory liabilities established by the Company are
required to be refunded to customers over time. On January 1, 1996, the
Company adopted SFAS No. 121, "Accounting for the Impairment of Long-Lived
Assets and for Long-Lived Assets to be Disposed Of." SFAS No. 121 imposes
stricter criteria for regulatory assets by requiring that such assets be
probable of future recovery at each balance sheet date. As of June 30,
1996, SFAS No. 121 did not have an impact on its financial position or
results of operations. However, this result may change as modifications
are made in the current regulatory framework pursuant to electric utility
restructuring orders issued by the DPU including a final order that is
expected to be issued by the end of 1996. For additional discussion of
electric industry restructuring activities, see Management's Discussion
and Analysis of Results of Operations.
The principal regulatory assets included in deferred charges were as
follows:
June 30, December 31,
1996 1995
(Dollars in thousands)
Purchased power contract buy-out $ 22 460 $ 23 838
Fuel charge stabilization 21 975 22 063
Postretirement benefit costs including pensions 12 187 12 283
Yankee Atomic unrecovered plant and
decommissioning costs 5 013 5 630
Pilgrim nuclear plant litigation costs 6 465 6 644
Conservation and load management costs 2 645 2 968
Other 714 804
$ 71 459 $ 74 230
The regulatory liabilities included in deferred credits were as
follows:
June 30, December 31,
1996 1995
(Dollars in thousands)
Excess Seabrook-related deferred income taxes $ 3 840 $ 4 887
Other deferred income taxes 2 182 2 182
Excess replacement power refunds 1 351 1 719
$ 7 373 $ 8 788
(3) Commitments and Contingencies
The Company is engaged in a continuous construction program presently
estimated at $110 million for the five-year period 1996 through 2000. Of
that amount, $24.1 million is estimated for 1996. As of June 30, 1996,
the Company's construction expenditures amounted to approximately $10.5
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.
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COMMONWEALTH ELECTRIC COMPANY
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.
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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 six months ended
June 30, 1996 and 1995 and unit sales for these periods is shown below:
Three Months Ended Six Months Ended
June 30, June 30,
1996 and 1995 1996 and 1995
Increase (Decrease)
(Dollars in thousands)
Electric Operating Revenues $ 7 254 7.4% $ 11 552 5.5%
Operating Expenses -
Electricity purchased for resale,
transmission and fuel 4 019 6.5 5 286 3.8
Other operation and maintenance (109) (0.5) 379 0.9
Depreciation 187 4.6 375 4.6
Taxes -
Federal and state income 1 209 71.1 1 541 35.3
Local property and other 90 4.5 172 3.9
5 396 6.0 7 753 3.9
Operating Income 1 858 25.7 3 799 27.0
Other Income (249)(622.5) (1 491) (121.2)
Income Before Interest Charges 1 609 22.4 2 308 15.1
Interest Charges (281) (6.5) (116) (1.4)
Net Income $ 1 890 66.3 $ 2 424 33.7
Unit Sales (Megawatthours or MWH)
Retail 53 978 7.0 98 607 6.2
Wholesale 41 310 28.5 (1 545) (0.4)
Total 95 288 10.3 97 062 4.8
The following is a summary of unit sales (in MWH) for the periods
indicated:
Three Months Six Months
Period Ended Total Retail Wholesale Total Retail Wholesale
June 30, 1996 1 016 062 829 578 186 484 2 104 686 1 687 740 416 946
June 30, 1995 920 774 775 600 145 174 2 007 624 1 589 133 418 491
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COMMONWEALTH ELECTRIC COMPANY
Operating Revenues, Electricity Purchased for Resale, Transmission and Fuel
Operating revenues for the three and six-month periods ended June 30,
1996 increased by $7.3 million (7.4%) and $11.6 million (5.5%), respectively,
from the corresponding periods in 1995 primarily due to an improvement in
total unit sales, particularly in the residential and commercial sectors, that
were attributable to more favorable weather and a slight increase in custom-
ers. Heating degree days for the current quarter and six-month period
increased by 4.1% and 11.7%, respectively. Included in total operating
revenues were revenues from wholesale sales that increased in the current
three and six-month periods by 27.7% and 5.6% to $3.9 million and $8.8
million, respectively, reflecting the changing capacity needs of non-affiliat-
ed utilities and NEPOOL. Fluctuations in the level of wholesale sales have no
impact on net income.
Electricity purchased for resale, transmission and fuel expense in-
creased in the current quarter and six-month periods due to the impact of
higher unit sales and greater fuel oil costs at affiliate Canal Electric
Company, offset by a decline in purchases from independent power producers.
Also contributing to lowering costs was the absence in the current periods of
a power exchange agreement that expired in October 1995. Power from these
sources was replaced in the current periods with increased generation from the
non-affiliated Pilgrim nuclear unit and new contract purchases through several
lower-cost off-system power sources.
Other Operation and Maintenance
The slight variances in other operation and maintenance in the current
quarter and six-month periods reflect higher costs for postretirement benefits
($377,000 and $1.4 million, respectively), labor ($1 million and $1.1 million)
and maintenance costs of approximately $500,000 in the current quarter that
primarily related to transmission and distribution facilities. These higher
costs were offset somewhat by lower employee health and pension costs
($408,000 and $756,000) in the current three and six-month periods, respec-
tively, and a lower provision for bad debts ($210,000 and $400,000).
Depreciation and Taxes
Depreciation expense increased slightly in the current three and six-
month periods due to a higher level of depreciable property, plant and equip-
ment. The increases in federal and state income taxes were due to a higher
level of pretax income. Local property and other tax increases for the
current three and six-month periods primarily reflect higher rates and assess-
ments in the Company's service area.
Other Income and Interest Charges
Other income decreased $1.5 million in the current six-month period from
the same period in 1995 due to the reversal of a $1.4 million reserve in the
first quarter of last year related to certain costs associated with the
Company's energy conservation program, the recovery of which was subsequently
approved by the Massachusetts Department of Public Utilities (DPU). The
decrease in the current quarter was primarily due to a settlement related to
conservation management services provided by an outside vendor ($293,000).
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COMMONWEALTH ELECTRIC COMPANY
Total interest charges declined in the current three and six-month
periods due to a significantly lower average level of advances from affiliate
companies and lower rates, and the absence in the current periods of interest
costs associated with the termination of a power contract. These decreased
charges were offset somewhat by greater interest costs resulting from a higher
average level of bank borrowings, despite slightly lower rates, and a decrease
in the allowance for borrowed funds used during construction.
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 DPU's intent is to
reduce electric costs to consumers by providing customers with the opportunity
to choose their electric power provider while retail electric companies such
as the Company and affiliate Cambridge Electric Light Company (the Companies)
continue to provide transmission and distribution services. On May 1, 1996,
the DPU issued an order containing proposed rules for implementing electric
industry restructuring.
The proposed rules, which were the subject of public comment and hearings
during June and July 1996, provide for:
(1) the establishment of an independent system operator to operate the
regional transmission system;
(2) a power exchange to manage a competitive bidding pool for
short-term power sales;
(3) functional separation of electric companies into generation,
transmission and distribution corporate entities;
(4) preservation of discounts for low-income customers, shut-off
protections and provision of service to all customers;
(5) registration requirements for generation suppliers;
(6) options for phased incentives for electric companies to divest
their generation assets;
(7) promotion of environmental goals;
(8) support for energy efficiency and renewable energy resources;
(9) a price cap system of incentive regulation for the remaining
distribution and transmission functions;
(10) unbundling of rates on bills into separate components of
transmission, distribution and energy, and implementation of a
competitive generation market by January 1, 1998; and
(11) a reasonable opportunity for recovery of stranded cost.
On August 9, 1996, the DPU issued an order delaying the issuance of final
rules until the end of 1996. The DPU also stated that it will soon issue a
revised schedule for electric companies to make company-specific unbundled
rate filings.
Although the DPU has not yet issued its revised rate filing schedule, the
Companies anticipate filing their revenue-neutral, unbundled rates in early
1997 after the issuance of the DPU's final rules. Also, during 1997, the
Companies will file their comprehensive restructuring plan. One element of
the Companies' plan (announced on February 15, 1996) calls for the auctioning,
in a competitive market, of their capacity entitlement (1,140 MW) in all of
their twenty-one power contracts in an effort to develop a competitive market
whereby customers would have the flexibility of choosing their electric
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COMMONWEALTH ELECTRIC COMPANY
supplier. These entitlements include contracts for power from Canal Units 1
and 2 and Seabrook Unit 1, which are owned or jointly owned by the System's
generating subsidiary Canal Electric Company. The Companies' plan provides
for total recovery of the difference between the current market value of the
Companies' power contracts and their unavoidable costs. Under the Companies'
plan, this difference, a component of what is often referred to as stranded
cost, would be recovered through a non-bypassable access charge paid over an
appropriate time period by all customers in the Companies' service areas.
The DPU's May 1 order reaffirmed that one of its transition principles is
to seek near-term rate relief for electric customers. Also, the DPU's
proposed rules would limit the period for recovery of net, non-mitigable
stranded cost to a ten-year period (January 1, 1998 through December 31,
2007.) Recovery of stranded cost depends upon the timing, nature, and degree
of competition that may result from future changes in regulatory policies
governing the Companies' activities and prices, as well as future power costs
and market prices of power. The Companies' single largest component of
stranded cost relates to their purchased power contracts with non-utility
generators. Based on their analyses of the DPU's effort, the Companies would
be unable to recover a substantial portion of their stranded cost within the
ten-year period without rate increases.
Generally accepted accounting principles require that losses be accrued
in full when costs to complete a contract are expected to exceed related
revenues expected to be realized. To the extent that the Companies determine
that they will be unable to recover costs associated with their purchased
power contracts, the Companies would be required to take an immediate charge
against earnings when such a loss is probable and estimable. 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 No. 121)
which became effective for 1996, requires impairment losses on long-lived
assets to be recognized when the book value of an asset exceeds its expected
future cash flows. This standard also imposes stricter criteria for the
retention of regulatory-created assets by requiring that such assets be
probable of future recovery at each balance sheet date. To the extent such
recovery is not probable at the balance sheet date, the Companies would be
required to take a charge against earnings in that period.
The Companies currently account for the economic effects of regulation in
accordance with the provisions of Statement of Financial Accounting Standards
No. 71 - "Accounting for the Effects of Certain Types of Regulation" (SFAS No.
71) based on the cost-of-service regulatory framework in which they operate.
The DPU has proposed that the distribution and transmission functions of their
businesses be regulated under a form of price capped incentive regulation.
In the event that recovery of specific costs through rates becomes
unlikely or uncertain for all or a portion of the Companies' utility opera-
tions, whether resulting from the expanding effects of competition or specific
regulatory actions which move the Companies away from cost-of-service rate-
making, SFAS No. 71 would no longer apply. While the Companies are unable to
predict the final rules which may be adopted by the DPU in its restructuring
proposal, the Companies could be required to discontinue the application of
SFAS No. 71. Discontinuance of SFAS No. 71 would cause the write-off of the
applicable portions of their regulatory assets which would have an adverse
impact on the Companies' financial position and results of operations. The
Companies will challenge any order that would have a significant adverse
impact on them, including attempts to limit their recovery of stranded cost.
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COMMONWEALTH ELECTRIC COMPANY
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
The Company is not a party to any pending material legal proceeding.
Item 5. Other Information
None.
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 six months ended June 30, 1996.
Filed herewith as Exhibit 2 is the restated Financial Data
Schedule for the six months ended June 30, 1995.
(b) Reports on Form 8-K
No reports on Form 8-K were filed during the three months ended
June 30, 1996.
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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: August 14, 1996 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 six months ended June 30,
1996 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-31-1996
<PERIOD-END> JUN-30-1996
<PERIOD-TYPE> 6-MOS
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 371,423
<OTHER-PROPERTY-AND-INVEST> 635
<TOTAL-CURRENT-ASSETS> 62,722
<TOTAL-DEFERRED-CHARGES> 77,028
<OTHER-ASSETS> 0
<TOTAL-ASSETS> 511,808
<COMMON> 51,099
<CAPITAL-SURPLUS-PAID-IN> 97,112
<RETAINED-EARNINGS> 20,000
<TOTAL-COMMON-STOCKHOLDERS-EQ> 168,211
0
0
<LONG-TERM-DEBT-NET> 153,228
<SHORT-TERM-NOTES> 36,540
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<INCOME-TAX-EXPENSE> 5,906
<OTHER-OPERATING-EXPENSES> 199,066
<TOTAL-OPERATING-EXPENSES> 204,972
<OPERATING-INCOME-LOSS> 17,882
<OTHER-INCOME-NET> (261)
<INCOME-BEFORE-INTEREST-EXPEN> 17,621
<TOTAL-INTEREST-EXPENSE> 8,007
<NET-INCOME> 9,614
0
<EARNINGS-AVAILABLE-FOR-COMM> 9,614
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<TOTAL-INTEREST-ON-BONDS> 6,984
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<EPS-PRIMARY> 0
<EPS-DILUTED> 0
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<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 six months ended June
30, 1995 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-31-1995
<PERIOD-END> JUN-30-1995
<PERIOD-TYPE> 6-MOS
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 363,033
<OTHER-PROPERTY-AND-INVEST> 630
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<TOTAL-ASSETS> 506,980
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<RETAINED-EARNINGS> 14,773
<TOTAL-COMMON-STOCKHOLDERS-EQ> 162,984
0
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<OPERATING-INCOME-LOSS> 14,083
<OTHER-INCOME-NET> 1,230
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<EARNINGS-AVAILABLE-FOR-COMM> 7,190
<COMMON-STOCK-DIVIDENDS> 7,767
<TOTAL-INTEREST-ON-BONDS> 7,041
<CASH-FLOW-OPERATIONS> (10,472)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
