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File No.: 70-7950
CERTIFICATE OF NOTIFICATION
(Rule 24)
SECURITIES AND EXCHANGE COMMISSION
BY
NEW ENGLAND ELECTRIC RESOURCES, INC. (NEERI)
In accordance with the order of the Securities and Exchange
Commission dated September 4, 1992, the following is a report for
the fourth quarter of 1993:
1. NEERI is a Massachusetts corporation which was formed
in January 1992. NEERI was not capitalized until
October 13, 1992 when one thousand shares of NEERI
common stock were issued to New England Electric System
(NEES).
During the quarter ended December 31, 1993, NEERI
undertook consulting activities for the Hungarian
Electricity Board pursuant to Agreements with the
Hungarian Electricity Board and the United States
Energy Association (USEA). The consulting activities
took place at New England Electric facilities and in
Hungary. No compensation was recognized during the
fourth quarter.
NEERI is providing consulting to the Central Vermont
Public Service Corporation (CVPS), providing an impact
evaluation of CVPS's residential new construction
program. The consulting work is taking place in and
around Rutland, Vermont and also at New England
Electric facilities. The terms are set forth in a
Consulting Service Agreement with CVPS which provides
for monthly billing for consulting. The compensation
recognized during the fourth quarter was $10,445.
Pursuant to a subcontracting consulting agreement with
Kemper Management Services (Kemper), NEERI is
evaluating the commercial and industrial demand side
management programs of Consolidated Edison of New York,
Inc. The consulting work is taking place in New York
and also at New England Electric facilities. The
compensation recognized in the fourth quarter was
$12,036.
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NEERI undertook consulting activities for the Mexican
Ministry of Energy, Mines, and State Enterprises. The
consulting work took place in Mexico and also at New
England Electric facilities pursuant to a letter
agreement. Compensation recognized in the fourth
quarter was $3,000.
2. As of December 31, 1993, NEES had purchased 1,000
shares of NEERI common stock and made a $265,000
subordinated loan to NEERI.
3. As of December 31, 1993, NEERI employed no permanent
personnel. Certain employees of NEPSCO have billed
time to NEERI under the terms of the Service Agreement
filed with Form U-1.
4. As of December 31, 1993, NEERI had not purchased or
received from associate companies of NEES any
intellectual property.
5. Attached in Exhibits A through C are a balance sheet,
twelve months ending income statement, and statement of
cash flow for NEERI.
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SIGNATURE
Pursuant to the requirements of the Public Utility Holding
Company Act of 1935, the undersigned company has duly caused this
certificate of notification (Commission's File No. 70-7950) to be
signed on its behalf by the undersigned officer thereunto duly
authorized.
NEW ENGLAND ELECTRIC RESOURCES, INC.
s/ John G. Cochrane
By: _________________________________
John G. Cochrane
Treasurer
Date: February 14, 1994
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EXHIBIT INDEX
Exhibit No. Description Page
- ----------- ----------- ----
A Balance Sheet at December 31, 1993 Filed
(Unaudited, subject to adjustment) herewith
B Statement of Income for twelve months Filed
ended December 31, 1993 herewith
(Unaudited, subject to adjustment)
C Statement of Cash Flows for twelve months Filed
ended December 31, 1993 herewith
(Unaudited, subject to adjustment)
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Exhibit A
NEW ENGLAND ELECTRIC RESOURCES, INC.
Balance Sheet
December 31, 1993
(Unaudited, Subject to Adjustment)
ASSETS
- ------
Current assets:
Cash $ 65,034
Accounts receivable 28,740
Accounts receivable from associated companies 20,186
Tax benefit receivable 61,600
---------
Total current assets $ 175,560
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LIABILITIES AND PARENT COMPANY'S INVESTMENT
- -------------------------------------------
Current liabilities:
Accounts payable to associated companies $ 102,914
Accounts payable 6,067
Accrued taxes 456
---------
Total current liabilities 109,437
---------
Parent company's investment:
Subordinated notes payable to parent 265,000
Common stock, par value $1 per share 1,000
Paid-in capital
Retained deficit (199,877)
---------
Total parent company's investment 66,123
---------
Total current liabilities and parent company's investment $ 175,560
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Exhibit B
NEW ENGLAND ELECTRIC RESOURCES, INC.
Statement of Income (Loss)
For the Twelve Months Ended December 31, 1993
(Unaudited, Subject to Adjustment)
INCOME
- ------
Services rendered to nonassociated companies $ 58,609
Miscellaneous income or loss
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TOTAL INCOME 58,609
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EXPENSE
- -------
Outside services employed 247,595
Taxes other than income taxes 456
Income taxes (71,371)
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TOTAL EXPENSE 176,680
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NET INCOME OR (LOSS) (118,071)
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Retained earnings/(deficit) at beginning of period (81,806)
---------
Retained earnings/(deficit) at end of period $(199,877)
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Exhibit C
NEW ENGLAND ELECTRIC RESOURCES, INC.
Statement of Cash Flows
For the Twelve Months Ended December 31, 1993
(Unaudited, Subject to Adjustment)
Operating Activities:
Net loss $(118,071)
Adjustments to reconcile net loss to net cash provided
by operating activities:
(Increase)/decrease in tax benefit receivable (22,300)
(Increase)/decrease in accounts receivable (48,926)
Increase/(decrease) in accounts payable (11,669)
Increase/(decrease) in accrued taxes 0
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Net cash provided by operating activities $(200,966)
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Financing Activities:
Subordinated notes payable to parent-issues $ 265,000
Proceeds from common stock issued 0
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Net cash used in financing activities 265,000
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Net increase/(decrease) in cash and cash equivalents 64,034
Cash and cash equivalents at beginning of period 1,000
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Cash and cash equivalents at end of period $ 65,034
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