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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 second quarter of 1994:
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).
To assist Nantucket Electric Company (NEC) in meeting
its short-term needs for reliable energy, NEERI is
providing materials, delivery, installation,
interconnection and start-up testing services for a
fully automated two unit diesel driven electric
generating plant at the existing NEC Airport Generating
Station. The work is taking place at NEC and New
England Electric facilities pursuant to a letter
agreement. No compensation was recognized during the
second quarter.
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. Compensation recognized during the second
quarter was $5,150.
Pursuant to two subcontracting agreements with
RCG/Hagler Bailly, Inc., NEERI is providing assistance
to the Polish Power Grid Company to develop a process
and capabilities for Integrated Resource Planning. The
project is part of the Regional Energy Efficiency
Program for Eastern and Central Europe and The Energy
Sector Restructuring, Privatization, and Regulatory
Reform Program of the Government of Poland which are
being conducted with the assistance of the United
States Agency for International Development and the
World Bank. The work is taking place in Poland and at
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New England Electric facilities. The subcontracting
agreement is a fixed price agreement and provides for
billing upon completion of services. The compensation
recognized in the second quarter was $22,000.
NEERI is providing consulting services on independent
power to the National Energy Policy Office of the
Government of Thailand pursuant to a subcontracting
agreement with Price Waterhouse (PW) in connection with
PW's Energy Project Development Fund and USAID. The
consulting is taking place in Thailand and at New
England Electric facilities. The agreement provides
for billing upon completion of services. The
compensation recognized during the second quarter was
$29,542.
NEERI conducted a seminar on Demand Side Management and
Integrated Resource Planning for the Asian Development
Bank. Work took place in Manila, Philippines and at
New England Electric facilities pursuant to a
Memorandum of Agreement. The compensation recognized
during the second quarter was $11,725.
NEERI has entered into a Consulting Services Agreement
with Trans Power New Zealand, Ltd. to support their new
Static VAr Compensation program near Christchurch, New
Zealand. Consulting activities have taken place in New
Zealand and at New England Electric facilities. The
compensation recognized for the quarter ending June 30,
1994 was $4,220.
Pursuant to a letter agreement with The World Bank,
NEERI provided consulting services on competitive
procurement of power supplies from non-utility power
project developers in India. The work involved efforts
at NEES, in Washington, D.C. and in Hyderabad, India.
No compensation was recognized for the second quarter.
2. As of June 30, 1994, NEES had purchased 1,000 shares of
NEERI common stock and made subordinated loans totaling
$500,000 to NEERI.
3. As of June 30, 1994, 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 June 30, 1994, 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: August 12, 1994
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EXHIBIT INDEX
Exhibit No. Description Page
- ----------- ----------- ----
A Balance Sheet at June 30, 1994 Filed
(Unaudited, subject to adjustment) herewith
B Statement of Income and Retained Filed
Deficit for twelve months ended herewith
June 30, 1994 (Unaudited, subject
to adjustment)
C Statement of Cash Flows for twelve Filed
months ended June 30, 1994 herewith
(Unaudited, subject to adjustment)
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Exhibit A
NEW ENGLAND ELECTRIC RESOURCES, INC.
Balance Sheet
June 30, 1994
(Unaudited, Subject to Adjustment)
ASSETS
- ------
Current assets:
Cash $ 36,378
Accounts receivable 72,638
Accounts receivable from associated companies 3,648
Tax benefit receivable 147,605
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Total current assets $ 260,269
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LIABILITIES AND PARENT COMPANY'S INVESTMENT
- -------------------------------------------
Current liabilities:
Accounts payable to associated companies $ 88,936
Accounts payable 29,478
Accrued taxes 456
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Total current liabilities 118,870
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Parent company's investment:
Common stock, par value $1 per share 1,000
Subordinated notes payable to parent 500,000
Paid-in capital
Retained deficit (359,601)
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Total parent company's investment 141,399
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Total current liabilities and parent company's investment $ 260,269
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Exhibit B
NEW ENGLAND ELECTRIC RESOURCES, INC.
Statement of Income and Retained Deficit
For the Twelve Months Ended June 30, 1994
(Unaudited, Subject to Adjustment)
INCOME
- ------
Services rendered to nonassociated companies $ 151,119
Miscellaneous income or loss
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TOTAL INCOME 151,119
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EXPENSE
- -------
Outside services employed 537,420
Taxes other than income taxes 0
Income taxes (140,780)
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TOTAL EXPENSE 396,640
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NET INCOME OR (LOSS) (245,521)
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Retained earnings/(deficit) at beginning of period (114,080)
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Retained earnings/(deficit) at end of period $(359,601)
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Exhibit C
NEW ENGLAND ELECTRIC RESOURCES, INC.
Statement of Cash Flows
For the Twelve Months Ended June 30, 1994
(Unaudited, Subject to Adjustment)
Operating Activities:
Net loss $(245,521)
Adjustments to reconcile net loss to net cash provided
by operating activities:
(Increase)/decrease in tax benefit receivable (91,709)
(Increase)/decrease in accounts receivable (64,442)
Increase/(decrease) in accounts payable 72,508
Increase/(decrease) in accrued taxes 0
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Net cash provided by operating activities $(329,164)
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Financing Activities:
Subordinated notes payable to parent-issues $ 360,000
Proceeds from common stock issued 0
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Net cash used in financing activities 360,000
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Net increase/(decrease) in cash and cash equivalents 30,836
Cash and cash equivalents at beginning of period 5,542
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Cash and cash equivalents at end of period $ 36,378
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