<PAGE>
File Nos. 70-5543/70-6958
70-7055/70-6513
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report
Pursuant to Rule 24 under the
Public Utility Holding Company Act of 1935
NEW ENGLAND ELECTRIC SYSTEM (NEES)
NEW ENGLAND ENERGY INCORPORATED (NEEI)
In accordance with the Orders of the Securities and Exchange Commission
dated July 19, 1978, October 22, 1985, October 3, 1991 and December 8, 1987,
following is a report for the second quarter of 1995:
For the purpose of this report and following the Commission's Order dated
October 22, 1985 (Release No. 23873), references herein to "Old Program"
relate to that portion of the NEEI oil and gas exploration and development
program which consists of prospects entered into through December 31, 1983.
Likewise, references to "New Program" relate to prospects entered into since
December 31, 1983. In 1991, NEEI sold substantially all of the properties in
the New Program. No new prospects have been acquired since December 31, 1986.
a. Investment in partnerships by prospect: See Exhibit a.
b. Summary statement of proved and probable reserves:
Old Program
-----------
Natural Gas
Oil and ----------- Total
Condensate Equivalent Equivalent
Bbl. MCF Bbl. Bbl.
---------- ---------- ---------- ----------
Balance 4/1/95 960,243 68,306,844 11,384,475 12,344,718
Additions & Revisions
through 6/30/95 119,572 4,804,737 800,790 920,362
--------- ----------- ---------- ----------
Balance 1,079,815 73,111,581 12,185,265 13,265,080
Production 2nd Qtr. 1995 (86,980) (4,579,383) (763,231) (850,211)
--------- ----------- ---------- ----------
Balance 6/30/95 992,835 68,532,198 11,422,034 12,414,869
New Program
-----------
None.
<PAGE>
-2-
c. Production and revenue by prospect: See Exhibit c.
d. Description of Operations:
NEEI has participated through its partnership with Samedan Oil
Corporation (Samedan) in drilling operations with the results as
summarized below. Also shown are activities on properties acquired
from a former partner, Dorchester Exploration, Inc. (Dorchester),
prior to termination of that partnership. NEEI sold its remaining
interests in "Dorchester" properties as of June 1, 1988.
Old Program
-----------
Since
Quarter Inception
------- ---------
No. of dry holes
Samedan 30 762
Dorchester 0 51
-- -----
30 813
-- -----
No. of productive wells
Samedan (26) 1,139*
Dorchester 0 69*
-- ------
(26) 1,208*
-- ------
No. of wells drilled 4 2,021
(both exploration and development) -- -----
* Includes depleted/sold wells as follows:
Samedan 1 469
Dorchester 0 69
-- -----
1 538
-- -----
New Program
-----------
None.
INVESTMENT
----------
Budget Authorized
Actual By SEC
---------------------- -----------------
Since
Quarter 1/1/95 1995 - 1998
---------- ---------- -----------------
Samedan $925,941 $2,975,823 $30,000,000 (A)
(A) Authorized through December 31, 1998, by Order dated
December 20, 1994 (Release No. 35-26197; 70-7055).
<PAGE>
-3-
e. Fuel Production, Sales and Other Income:
Old Program:
1. Sales to affiliates:
There have been no direct sales of NEEI oil and gas production
to affiliates.
<TABLE>
<CAPTION>
Quarter Inception
Ended Thru
6/30/95 6/30/95
-------- --------
<S> <C> <C>
2. Sales to nonaffiliates
(Exhibit c.):
Equivalent barrels of fuel
produced 850,211 46,938,424
Average price per barrel $ 9.17 $ 14.17
----------- --------------
Sales revenues $ 7,796,050 $ 665,295,001
3. Loss to NEP 11,796,631 308,505,362
4. Flow through of excess deferred 1,076,000 79,483,811
taxes
5. Investment tax credit - 13,817,248
6. Depletion - 6,740,318
7. Deferred tax related to reserve - 9,080,000
addition
8. Transfer of reserve (net) from - 6,400,000
NEES
----------- --------------
Total $20,641,681 $1,089,321,740
----------- --------------
New Program: None.
f. Credits applied to
New England Power Company (NEP):
1. Disposition of proceeds:
Amortization of cost of
fuel reserves $18,357,641 $1,001,275,387
Production costs 1,411,640 75,231,263
State taxes 872,400 7,337,342
Savings to NEP - 8,701,242
Royalty to NEP - 1,099,807
Other - 65,472
----------- --------------
Total $20,641,681 $1,093,710,513
----------- --------------
Net income/(loss)/retained $ - $ (4,388,773)
deficit ----------- --------------
</TABLE>
<PAGE>
-4-
f. continued
<TABLE>
<CAPTION>
Quarter Inception
Ended Thru
6/30/95 6/30/95
-------- ---------
<S> <C> <C>
2. Royalties prepaid to NEP:
Beginning balance in account $ 342,312 $ -
------------ ------------
Royalties/savings earned - (9,801,049)
Royalties passed on to NEP - 10,143,361 *
------------ ------------
Ending balance in account $ 342,312 $ 342,312
------------ ------------
3. Losses to be passed on to NEP:
Beginning balance in account $ 36,016,707 $ -
------------ ------------
Losses accrued 11,769,631 308,505,362
Losses passed on to NEP** (24,381,232) (285,100,256)
------------ ------------
Ending balance in account $ 23,405,106 $ 23,405,106
------------ ------------
* Includes $8,701,242 savings passed on to NEP for sales prior to 1/1/84
pursuant to Commission Order File No. 70-5543.
** Consistent with pricing policy approved in Release No. 23873, current
year losses cannot be recovered until the following year.
</TABLE>
<PAGE>
-5-
g. Investment by NEES compared with Commission Authorization:
<TABLE>
<CAPTION>
Release No./Date
--------------------------------------
25129 24847 24847
----- ----- -----
8/8/90 3/29/89 3/29/89
------ ------- -------
<S> <C> <C> <C>
Maximum NEES Investment authorized: $45,000,000(1) $75,000,000 $400,000,000
----------- ----------- ------------
1. Investments by NEES-inception through
March 31, 1995 (net)
Subordinated notes 3,273,481 15,597,6911 -
Common stock and premium 250,000 - -
----------- ----------- ------------
Total investment by NEES 3,523,481 15,597,691 -
Investment by NEES-during the
quarter (net)
Subordinated notes 553,883 45,800 -
Total investment by NEES through
June 30, 1995 (net)
Subordinated notes 3,827,364 15,643,491 -
Common stock and premium 250,000 - -
----------- ----------- ------------
$ 4,077,364 $15,643,491 $ -
----------- ----------- ------------
2. Increase or Reduction in Investment
by NEES:
Date Amount Date Amount Date Amount
---- ------ ---- ------ ---- ------
Issues of subordinated notes
to NEES during quarter 4/6/95 $ 325,000 5/19/95 $45,800
ended June 30, 1995 5/19/95 228,883
Payments of
subordinated notes to NEES
during quarter ended
June 30, 1995 $ - $ -
------------ ------- -------
Net change in investment $ 553,883 $45,800 $ -
------------ ------- -------
_______________
(1) Plus any after-tax net loss attributable to the expensing of interest
on up to $37,200,000 of borrowings in connection with the Old Program.
</TABLE>
<PAGE>
-6-
h. Financial Statements:
Exhibit h-1 Balance Sheet of NEEI at June 30, 1995, (unaudited, subject
to adjustment)
Exhibit h-2 Statement of Income and Retained Deficit of NEEI for the
quarter ended June 30, 1995 (unaudited, subject to adjustment)
Exhibit h-3 Statement of Cash Flows of NEEI for the quarter ended
June 30, 1995 (unaudited, subject to adjustment)
Exhibit h-4 Computation of Bank Interest for the quarter ended
June 30, 1995
i. Fuel purchased during quarter for NEP:
(Summary: See Exhibit i for detail.)
1. From proceeds from sale of NEEI Old Program production
Date purchased (delivered) 2nd Quarter
Quantity of fuel (equiv. bbl) 2,188,210.81
Average net price (per equiv. bbl) $ 6.54
-------------
Cost to NEEI $ 14,314,165
Loss from NEEI fuel
exploration activities 24,381,232
-------------
Cost to NEP 38,695,397
Adjustments, inspection charges, etc. -
------------- -----------
Total $38,695,397
===========
j. Copies of filings on Form 429 related to the above sales are attached.
(See Exhibits j-1 through j-6.)
k. Use of Proceeds from Sales of NEEI New Program Production:
None.
<PAGE>
-7-
Sale of NEEI Wells
------------------
Old Program
-----------
During the period from April 1, 1995 through June 30, 1995, NEEI disposed
of its interest in Existing (Old) Program wells containing proved or probable
reserves as follows:
<TABLE>
<CAPTION>
Est. Net Reserves
Effective (Eq. Bbls) as
Date of of Date of
Prospect Location Disposition Disposition
------------ ------------------ ------------- ---------------
<S> <C> <C> <C>
Greenfield Blane County, OK
Dobbins Well # 1-29 02/01/95 1,766
Tolbert Well # 1-29 02/01/95 3,757
-------
5,023
=======
The order of the Securities and Exchange Commission dated October 22,
1985 (Release No. 23873) requires NEEI to include the reserves associated with
the above wells as production upon which royalties would be payable to NEP,
but authorizes NEEI to defer such inclusion to coincide with the estimated
production cycle for each well. However, in light of the particularly small
quantities of reserves represented in the table above, NEEI will include the
total 5,023 barrels of remaining reserves in the calculation of the royalty
for 1995. Due to operating losses, no royalty has been paid since 1985.
Losses Passed to NEP
--------------------
Through December 31, 1985, NEEI's Old Program generated customer savings.
Due to precipitous declines in oil and gas market prices, the Old Program
generated operating losses for the first time during 1986. As a result of the
losses during 1986, the crossover reserve, which was $24.1 MM at December 31,
1985, was exhausted. NEEI passed its 1986 losses in excess of the reserve,
$277,732, on to NEP in 1987. NEEI's Old Program incurred losses in 1987
through 1993 totalling $245,028,708 which were passed on to NEP in 1988
through 1994. NEEI's Old Program loss of $39,793,816, incurred in 1994, was
passed on to NEP in 1995.
<PAGE>
-8-
SIGNATURES
Pursuant to the requirements of the Public Utility Holding Company Act of
1935, each undersigned company has duly caused this report (Commission's File
Nos. 70-5543, 70-6513, 70-6958, and 70-7055) to be signed on its behalf, as
indicated, by the undersigned officer thereunto duly authorized by each such
company.
NEW ENGLAND ELECTRIC SYSTEM
s/Michael E. Jesanis
Michael E. Jesanis, Treasurer
NEW ENGLAND ENERGY INCORPORATED
s/John G. Cochrane
John G. Cochrane, Treasurer
Date: August 14, 1995
The name "New England Electric System" means the trustee or trustees for the
time being (as trustee or trustees but not personally) under an agreement and
declaration of trust dated January 2, 1926, as amended, which is hereby
referred to, and a copy of which as amended has been filed with the Secretary
of the Commonwealth of Massachusetts. Any agreement, obligation or liability
made, entered into or incurred by or on behalf of New England Electric System
binds only its trust estate, and no shareholder, director, trustee, officer or
agent thereof assumes or shall be held to any liability therefor.
</TABLE>
<PAGE>
EXHIBIT INDEX
Exhibit No. Description Page
----------- ----------- ----
a Investment in partnerships by prospect Filed herewith
(Old Program)
c Production and net revenue (Old Program) Filed herewith
h-1 Balance Sheet at June 30, 1995 Filed herewith
(Unaudited, Subject to Adjustment)
h-2 Statement of Income and Retained Filed herewith
Deficit for the Quarter Ended
June 30, 1995 (Unaudited,
Subject to Adjustment)
h-3 Statement of Cash Flows for the Quarter Filed herewith
Ended June 30, 1995 (Unaudited,
Subject to Adjustment)
h-4 Computation of Bank Interest for the Filed herewith
Quarter Ended June 30, 1995
i Fuel Purchased for NEP for the Quarter Filed herewith
Ended June 30 1995
j-1 Monthly Report of Cost and Quality Filed herewith
of Fuels for Electric Plants
April 1995 (Brayton Point)
j-2 Monthly Report of Cost and Quality Filed herewith
of Fuels for Electric Plants
April 1995 (Salem Harbor)
j-3 Monthly Report of Cost and Quality Filed herewith
of Fuels for Electric Plants
May 1995 (Brayton Point)
j-4 Monthly Report of Cost and Quality Filed herewith
of Fuels for Electric Plants
May 1995 (Salem Harbor)
j-5 Monthly Report of Cost and Quality Filed herewith
of Fuels for Electric Plants
June 1995 (Brayton Point)
j-6 Monthly Report of Cost and Quality Filed herewith
of Fuels for Electric Plants
June 1995 (Salem Harbor)
<PAGE>
<TABLE>
Exhibit a
NEW ENGLAND ENERGY INCORPORATED
INVESTMENT IN PARTNERSHIPS BY PROSPECT - OLD PROGRAM
JUNE 30, 1995
<CAPTION>
ESTIMATED TOTAL COST
---------------------------------------------------
Samedan Prospect Name Exploration Development* Total
------- ------------- ----------- ------------ ---------
<S> <C> <C> <C> <C>
62583 Brazo 50-54/37&8/65-7 17,318,119.17 48,789,046.69 66,107,165.86
62436 Eugene Island 247/8/9 8,839,624.16 19,803,745.41 28,643,369.57
61402 Northeast Chevron 2,564,439.34 23,294,434.19 25,858,873.53
62493 Eugene Island Blk 208 1,581,082.74 18,841,421.00 20,422,503.74
62559 West Delta 18/33 8,370,144.99 10,920,863.38 19,291,008.37
62479 Main Pass 90/93+4/102+5 3,850,027.84 14,651,904.23 18,501,932.07
62367 Hl 21/22/22L/34/50/51 3,949,618.42 14,238,002.65 18,187,621.07
61998 High Island A365/A376 0.00 12,169,566.01 12,169,566.01
62282 West Cameron b131/132 4,678,480.72 7,201,838.28 11,880,319.00
62289 Main Pass 107/108 1,448,977.07 7,902,319.32 9,351,296.39
62468 Vermilion 114/109 1,914,848.45 5,375,635.48 7,290,483.93
61898 Eugene Island B 24&27 2,966,098.22 4,029,359.99 6,995,458.21
62331 West Delta 27/28/48 2,746,928.39 3,867,207.27 6,614,135.66
21494 Banner 325,703.73 5,282,670.07 5,608,373.80
62554 Eugene Island 28 1,739,766.26 3,777,511.65 5,517,277.91
62366 Brazos 400.12.13.435 1,778,642.70 3,597,054.08 5,375,696.78
61501 Vermilion 241/261 (EC) 2,221,789.49 3,078,363.93 5,300,153.42
62365 Matagorda Is B 586/87 2,151,279.02 2,517,546.64 4,668,825.66
42017 Kildare Smackover T 975,610.29 2,576,096.14 3,551,706.43
53330 Derrick Draw/ PDR RIV 2,204,188.98 1,319,309.49 3,523,498.47
62558 South Timbalier 197 2,306,148.19 521,795.19 2,827,943.38
62543 West Cameron 433/457 1,812,347.86 834,849.08 2,647,196.94
51673 Williston 0.00 2,641,589.99 2,641,589.99
62377 Vermilion Block 76 945,194.48 1,652,262.76 2,597,457.24
62284 Vermilion Blk 167 924,493.21 1,513,495.56 2,437,988.77
62322 West Cameron Blk 67 0.00 2,420,322.67 2,420,322.67
51947 Powder River Basin 2,415,951.37 0.00 2,415,951.37
21617 Fort Cobb 405,558.35 1,717,790.24 2,123,348.59
42004 Provident City/Speaks 0.00 2,041,621.10 2,041,621.10
Other 15,861,296.16 22,870,817.66 38,732,113.82
-------------- -------------- --------------
Total Productive Samedan 96,296,359.60 249,448,440.15 345,744,799.75
-------------- -------------- --------------
Dry Holes
Samedan (including depleted wells) 397,949,438.63 397,949,438.63
Work in Process
Samedan 1,687,991.07 1,687,991.07
Dorchester (terminated investment) 67,401,440.17 67,401,440.17
-------------- -------------- --------------
Grand Total 563,335,229.47 249,448,440.15 812,783,669.62
============== ============== ==============
*Includes Lease Acquisition
</TABLE>
<PAGE>
<PAGE>
<TABLE>
Exhibit c
NEW ENGLAND ENERGY INCORPORATED
PRODUCTION AND NET REVENUE - OLD PROGRAM
FOR THE QUARTER ENDED JUNE 30, 1995
<CAPTION>
Production Revenue
------------------------- ---------------------------------------
Oil and
Prospect Condensate Gas Oil and
No. Prospect Name Bbls. MCF Condensate Gas Total
-------- ------------- ---------- ----- ---------- ----- -------
<S> <C> <C> <C> <C> <C> <C>
62583 Brazo 50-54/37&8/65-7 5,048.12 2,108,682.96 92,666.38 3,087,841.04 3,180,507.42
62479 Main Pass 90/93+4/102+5 0.00 383,229.06 0.00 564,339.78 564,339.78
62367 Hl 21/22/22L/34/50/51 761.52 347,781.96 12,432.67 512,739.09 525,171.76
62289 Main Pass 107/108 3,818.90 368,056.92 67,859.71 363,429.85 431,289.56
62554 Eugene Island 28 4,204.89 130,962.96 68,931.40 200,870.74 269,802.14
61898 Eugene Island B 24&27 4,696.16 122,116.98 76,434.30 187,471.72 263,906.02
53330 Derrick Draw/PDR RIV 15,192.61 4,246.92 244,365.95 2,398.74 246,764.69
62366 Brazos 400.12.13.435 261.52 164,765.94 4,413.85 219,911.79 224,325.64
62493 Eugene Island Blk 208 12,037.14 3,931.02 208,991.96 6,039.88 215,031.84
42017 Kildare Smackover T 9,030.07 11,054.94 154,373.05 14,347.79 168,720.84
62288 West Cameron Blk 290 346.28 109,425.00 5,762.77 154,850.81 160,613.58
62365 Matagorda Is B 586/87 83.80 136,123.98 1,378.83 150,817.74 152,196.57
62582 Brazos 476/491/449 201.40 103,212.00 3,586.05 131,574.40 135,160.45
62284 Vermilion Blk 167 5,622.91 5,763.96 101,772.85 8,910.15 110,683.00
62436 Eugene Island 247/8/9 4.07 75,684.00 66.03 110,445.93 110,511.96
62331 West Delta 27/28/48 3,705.03 3,402.00 60,126.65 4,735.34 64,861.99
62468 Vermilion 114/109 166.30 61,112.04 2,322.54 60,211.31 62,533.85
62282 West Cameron B131/132 64.82 40,732.02 1,089.16 60,609.57 61,698.73
Other 10,421.51 293,981.16 176,084.07 326,106.83 502,190.90
--------- ------------ ------------ ------------ ------------
Totals 86,979.52 4,579,382.88 1,480,210.71 6,315,839.26 7,796,049.97
========= ============ ============ ============ ============
</TABLE>
<PAGE>
<PAGE>
<TABLE>
Exhibit h-1
NEW ENGLAND ENERGY INCORPORATED
Balance Sheet
June 30, 1995
(Unaudited, Subject to Adjustment)
<CAPTION>
ASSETS
------
Old Program New Program Combined
----------- ----------- --------
<S> <C> <C> <C>
Current assets:
Cash, including temporary cash investments
of $12,875,000 with affiliated companies $ 12,905,849 $ - $ 12,905,849
Accounts receivable:
Affiliated companies:
- accrued loss to be passed
on to affiliate 23,405,106 - 23,405,106
- from sales of oil 7,625,559 - 7,625,559
- other 40,041 204 40,245
Prepaid expenses 342,312 - 342,312
-------------- ------------ --------------
Total current assets 44,318,867 204 44,319,071
-------------- ------------ --------------
Property at cost:
Cost of fuel reserves:
Exploration and development costs:
Samedan 743,694,239 - 743,694,239
Dorchester 67,401,440 - 67,401,440
Cost of capital 439,694,777 - 439,694,777
Other 33,031,249 - 33,031,249
-------------- ------------ --------------
1,283,821,705 - 1,283,821,705
Less-accumulated amortization (1,001,275,387) - (1,001,275,387)
-------------- ------------ --------------
Net cost of fuel reserves 282,546,318 - 282,546,318
Work in process - Samedan 1,687,991 - 1,687,991
-------------- ------------ --------------
Total property 284,234,309 - 284,234,309
-------------- ------------ --------------
$ 328,553,176 $ 204 $ 328,553,380
============== ============ ==============
LIABILITIES AND PARENT COMPANY'S INVESTMENT
-------------------------------------------
Current liabilities:
Accrued exploration and development costs $ 28,383,686 $ - $ 28,383,686*
Accounts payable 4,964,037 341,711 5,305,748
Accrued interest 1,851,204 - 1,851,204
Accrued taxes payable 7,591,161 (80,200) 7,510,961
-------------- ------------ --------------
Total current liabilities 42,790,088 261,511 43,051,599
-------------- ------------ --------------
Deferred income taxes 89,322,960 (50,900) 89,272,060
-------------- ------------ --------------
Deferred credit 6,151,814 - 6,151,814
-------------- ------------ --------------
Notes payable to banks under credit agreement 193,000,000 - 193,000,000
-------------- ------------ --------------
Parent company's investment:
Subordinated notes payable to parent 3,827,364 15,643,491 19,470,855
Common stock, par value $1 per share 2,500 - 2,500
Paid-in capital 247,500 - 247,500
Retained deficit (6,789,050) (15,853,898) (22,642,948)
-------------- ------------ --------------
Total parent company's investment (2,711,686) (210,407) (2,922,093)
-------------- ------------ --------------
$ 328,553,176 $ 204 $ 328,553,380
============== ============ ==============
*Accrued exploration and development costs:
Total
(All Samedan)
-------------
Exploration $10,500,082
Development 17,428,157
Work in process 153,670
Advance 301,777
-----------
$28,383,686
===========
</TABLE>
<PAGE>
<TABLE>
Exhibit h-2
NEW ENGLAND ENERGY INCORPORATED
Statements of Income and Retained Deficit
For the Quarter Ended June 30, 1995
(Unaudited, Subject to Adjustment)
<CAPTION>
Old Program New Program Combined
----------- ----------- --------
<S> <C> <C> <C>
Operating revenue:
Sales of fuel to an affiliate $ 38,695,397 $ - $ 38,695,397
Loss passed on to an affiliate (24,381,232) - (24,381,232)
Accrued loss to be passed on to an affiliate 11,769,631 - 11,769,631
Sales to nonaffiliates:
Oil 1,480,211 521 1,480,732
Gas 6,315,839 7,705 6,323,544
------------ ------------ ------------
Total operating revenue 33,879,846 8,226 33,888,072
------------ ------------ ------------
Operating expenses:
Purchases of fuel for an affiliate 14,314,165 - 14,314,165
Amortization of cost of fuel reserves 18,357,641 - 18,357,641
Production costs 1,411,640 1,585 1,413,225
------------ ------------ ------------
Total operating expenses 34,083,446 1,585 34,085,031
------------ ------------ ------------
Operating income/(loss) (203,600) 6,641 (196,959)
Other income/(expense):
Interest income - 619 619
Interest expense (659,973) - (659,973)
Other expense - - -
State taxes (853,200) - (853,200)
------------ ------------ ------------
Operating and other income/(loss) (1,716,773) 7,260 (1,709,513)
------------ ------------ ------------
Federal income taxes:
Current federal income taxes 8,473,400 2,500 8,475,900
Deferred federal income taxes (9,773,600) - (9,773,600)
------------ ------------ ------------
Net federal income taxes (1,300,200) 2,500 (1,297,700)
------------ ------------ ------------
Net income (416,573) 4,760 (411,813)
Retained deficit at beginning of period (6,372,477) (15,858,658) (22,231,135)
------------ ------------ ------------
Retained deficit at end of period $ (6,789,050) $(15,853,898) $(22,642,948)
============ ============ ============
</TABLE>
<PAGE>
<PAGE>
<TABLE>
Exhibit h-3
NEW ENGLAND ENERGY INCORPORATED
Statements of Cash Flows
For the Quarter Ended June 30, 1995
(Unaudited, Subject to Adjustment)
<CAPTION>
Old Program New Program Combined
----------- ----------- --------
<S> <C> <C> <C>
Operating Activities:
Net income $ (416,573) $ 4,760 $ (411,813)
Adjustments to reconcile net income to
net cash provided by operating activities:
Amortization of cost of fuel reserves 18,357,641 - 18,357,641
Loss passed on to an affiliate 24,381,232 - 24,381,232
Accrued loss to be passed on to an affiliate (11,769,631) - (11,769,631)
Deferred income taxes (9,501,200) _ (9,501,200)
(Increase)/decrease in accounts receivable
(excluding loss to be passed on to affiliate) (2,780,078) 7 (2,780,071)
Increase/(decrease) in accrued exploration
and development costs 520,856 - 520,856
Increase/(decrease) in accounts payable 1,143,836 (104,493) 1,039,343
Increase/(decrease) in accrued interest payable 1,095,111 - 1,095,111
Increase/(decrease) in accrued taxes payable 1,560,000 2,500 1,562,500
------------ --------- ------------
Net cash provided by operating activities $ 22,591,194 $ (97,226) $ 22,493,968
------------ --------- ------------
Investing Activities:
Investment in property - Samedan:
Exploration (also includes dry holes, depleted
wells and work in process) $ (259,098) $ - $ (259,098)
Development (also reflects transfer of
depleted wells) (1,407,448) - (1,407,448)
Capital costs (2,677,678) - (2,677,678)
Other (381,999) - (381,999)
------------ --------- ------------
Net cash used in investing activities $ (4,726,223) $ - $ (4,726,223)
------------ --------- ------------
Financing Activities:
Subordinated notes payable to parent-issues $ 553,883 $ 45,800 $ 599,683
Subordinated notes payable to parent-retirements - - -
Changes in notes payable to bank under
credit agreement (12,000,000) - (12,000,000)
------------ --------- ------------
Net cash used in financing activities $(11,446,117) $ 45,800 $(11,400,317)
------------ --------- ------------
Net increase/(decrease) in cash and cash equivalents $ 6,418,854 $ (51,426) $ 6,367,428
Cash and cash equivalents at beginning of period 6,486,995 51,426 6,538,421
------------ --------- ------------
Cash and cash equivalents at end of period $ 12,905,849 $ - $ 12,905,849
------------ --------- ------------
</TABLE>
<PAGE>
<PAGE>
Exhibit h-4
NEW ENGLAND ENERGY INCORPORATED
Computation of Bank Interest
Quarter Ended June 30, 1995
--------------------------------
Cost of Notes Payable to Banks Under Credit Agreement
-----------------------------------------------------
Date Paid
Date or Maturity Annual
Amount Issued Date Rate % Total
------ ------ ----------- ------ -----
Old Program
-----------
$ 97,000,000 02/28/95 04/13/95 6.7500 $ 218,250.00
37,000,000 03/06/95 04/13/95 6.8125 84,020.83
14,000,000 03/14/95 04/18/95 6.7500 31,500.00
25,000,000 03/23/95 04/24/95 6.7500 56,250.00
32,000,000 03/27/95 04/27/95 6.7500 72,000.00
65,000,000 04/13/95 05/15/95 6.3600 367,466.67
50,000,000 04/13/95 06/13/95 6.4225 544,128.48
50,000,000 04/13/95 07/13/95 6.4850 711,548.61
37,000,000 04/13/95 10/13/95 6.6725 541,769.93
61,000,000 05/15/95 08/15/95 6.3600 506,503.33
30,000,000 06/13/95 07/28/95 6.2000 93,000.00
15,000,000 06/13/95 07/13/95 6.2975 47,231.25
---------------
3,273,669.10
Interest Rate Swap (234,890.29)
Fees (Primarily facility) 298,871.84
---------------
Total Old Program $3,337,650.65
---------------
<PAGE>
<TABLE>
Exhibit i
NEW ENGLAND ENERGY INCORPORATED
Fuel Purchased for NEP
for the Quarter Ended June 30, 1995
-----------------------------------------
<CAPTION>
Exploration
-----------
Date purchased (delivered) Apr. 8, 1995 Apr. 16, 1995 Apr. 20, 1995 Apr.20, 1995
-------------------------- ------------- -------------
<S> <C> <C> <C> <C>
Quantity of fuel (eq. bbl) 161,416.86 222,678.00 166,628.62 161,317.36
Average net price (per eq. bbl)$ 6.44$ 7.02 $ 6.65 $ 6.65
------------- ------------- ------------- -------------
Cost to NEEI $1,039,529.30$1,563,069.85 $1,040,620.26 $1,075,579.61
Loss from NEEI fuel
exploration activities 1,910,752.52 2,635,923.89 1,972,446.56 1,909,574.72
------------- ------------- ------------- -------------
Cost to NEP $2,950,281.82$4,198,993.74 $3,013,066.82 $2,985,154.33
------------- ------------- ------------- -------------
Date purchased (delivered) May 5, 1995 May 14, 1995 May 19, 1995
------------- ------------ ------------
Quantity of fuel (eq. bbl) 166,754.12 163,557.41 165,793.13
Average net price (per eq. bbl)$ 6.84 5.79 $ 6.50
------------- ------------- -------------
Cost to NEEI $1,119,923.90$ 948,394.78 $1,077,252.92
Loss from NEEI fuel
exploration activities 1,973,931.61 1,936,090.97 1,962,556.01
------------- ------------- -------------
Cost to NEP $3,093,855.51$2,884,485.75 $3,039,808.93
------------- ------------- -------------
Date purchased (delivered) May 22, 1995 May 26, 1995 May 30, 1995
------------- ------------ ------------
Quantity of fuel (eq. bbl) 156,805.76 165,977.29 160,486.15
Average net price (per eq. bbl)$ 6.37$ 6.85 $ 6.54
------------- ------------- -------------
Cost to NEEI $ 999,392.46$1,138,475.30 $1,049,392.47
Loss from NEEI fuel
exploration activities 1,856,169.13 1,964,736.03 1,899,735.37
------------- ------------- -------------
Cost to NEP $2,855,561.59$3,103,211.33 $2,949,127.84
------------- ------------- -------------
Date purchased (delivered) June 6, 1995 June 15, 1995 June 27, 1995
------------- ------------- ------------
Quantity of fuel (eq. bbl) 164,580.73 166,130.35 166,085.03
Average net price (per eq. bbl)$ 7.15$ 6.80 $ 6.04
------------- ------------- -------------
Cost to NEEI $1,178,030.54$1,080,737.30 $1,003,766.31
Loss from NEEI fuel
exploration activities 1,948,204.46 1,966,547.83 444,563.27
------------- ------------- -------------
Cost to NEP $3,126,235.00$3,047,285.13 $1,448,329.58
------------- ------------- -------------
</TABLE>
<PAGE>
<TABLE>
Exhibit j-1
<CAPTION>
Monthly Cost and Quality of Fuels for Electric Plants
FERC 429 Facsimile
<S> <C> <C>
01 Company-Plant Code 13433-1619
02 Month & Year of Report 04/95
03 Reporting Company New England Electric
04 Page Number 1
05 Plant Name Brayton Point
06 Plant Location Brayton Point Road, Somerset, MA 02726
07 Person to be Contacted Fuel Dept.
Concerning Data Coal Group
Entered on this Form 25 Research Drive, Westboro, MA 01582
08 Telephone Number 508-389-3029 / 508-389-3227
09 Signature of Official
Submitting this Report s/ Mary E. O'Neil
10 Title Senior Fuel Analyst
11 Date Report Completed June 12, 1995
<CAPTION>
Purchases Coal Mines Only Source Data
--------- -------------------------- -------------------------------------------------------
Quality as Received
Cont Fuel Coal State County Originating Quantity ------------------- Purch Price
Type Expir Type Type Dist Abbr No Location Received BTU Sulfur Ash Cents/MMBT
(1) (2) (3) (4)
---- ----- ---- ---- ---- ----- ------ ----------- -------- --- ------ ---- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12 C 06/95 BIT U 08 WV 059 Ashland 39.2 13036 0.70 8.89 179.77
13 S 07/95 BIT U 08 WV 059 Ashland 40.4 13030 0.75 8.93 169.73
14 S 06/95 BIT S 3 WV 001 Juliana C 0.2 12880 0.71 9.29 167.01
15 S 12/95 BIT S 3 WV 001 Juliana C 40.2 12880 0.71 9.29 167.01
16 S 05/95 BIT U 8 KY 159 Martiki 20.8 12721 0.73 7.89 176.79
17 C 02/96 BIT U 50 IM 999 Norte De Santan 32.0 12600 0.69 7.70 153.02
18 S 05/95 BIT U 8 KY 159 Pontiki 19.0 12721 0.73 7.89 176.79
19 C 06/97 BIT U 8 WV 045 Rum Creek 40.6 12363 0.73 11.85 167.80
20 C 06/95 BIT U 8 WV 059 Sprouse Creek 40.3 12637 0.72 9.48 179.64
Coal prices reported exclude $6,510,173.68 paid to NEEI for coal delivered to Brayton Point and Salem Harbor.
<FN>
(1) Coal = 1,000 tons (2) Coal per lb (3) and (4) Percent
Oil = 1,000 bbls Oil per gal
Gas = 1,000 Mcf Gas per cu ft
</FN>
</TABLE>
<PAGE>
<TABLE>
Exhibit j-2
<CAPTION>
Monthly Cost and Quality of Fuels for Electric Plants
FERC 429 Facsimile
<S> <C> <C>
01 Company-Plant Code 13433-1626
02 Month & Year of Report 04/95
03 Reporting Company New England Electric
04 Page Number 1
05 Plant Name Salem Harbor
06 Plant Location 24 Fort Ave., Salem, MA 01970
07 Person to be Contacted Fuel Dept.
Concerning Data Coal Group
Entered on this Form 25 Research Drive, Westboro, MA 01582
08 Telephone Number 508-389-3029 / 508-389-3227
09 Signature of Official
Submitting this Report s/ Mary E. O'Neil
10 Title Senior Fuel Analyst
11 Date Report Completed June 12, 1995
<CAPTION>
Purchases Coal Mines Only Source Data
--------- -------------------------- -------------------------------------------------------
Quality as Received
Cont Fuel Coal State County Originating Quantity ------------------- Purch Price
Type Expir Type Type Dist Abbr No Location Received BTU Sulfur Ash Cents/MMBT
(1) (2) (3) (4)
---- ----- ---- ---- ---- ----- ------ ----------- -------- --- ------ ---- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12 C 12/95 BIT S 50 IM 999 Diablo Paso 54.0 12894 0.54 6.50 143.58
<FN>
(1) Coal = 1,000 tons (2) Coal per lb (3) and (4) Percent
Oil = 1,000 bbls Oil per gal
Gas = 1,000 Mcf Gas per cu ft
</FN>
</TABLE>
<PAGE>
<TABLE>
Exhibit j-3
<CAPTION>
Monthly Cost and Quality of Fuels for Electric Plants
FERC 429 Facsimile
<S> <C> <C>
01 Company-Plant Code 13433-1619
02 Month & Year of Report 05/95
03 Reporting Company New England Electric
04 Page Number 1
05 Plant Name Brayton Point
06 Plant Location Brayton Point Road, Somerset, MA 02726
07 Person to be Contacted Fuel Dept.
Concerning Data Coal Group
Entered on this Form 25 Research Drive, Westboro, MA 01582
08 Telephone Number 508-389-3029 / 508-389-3227
09 Signature of Official
Submitting this Report s/ Mary E. O'Neil
10 Title Senior Fuel Analyst
11 Date Report Completed July 13, 1995
<CAPTION>
Purchases Coal Mines Only Source Data
--------- -------------------------- -------------------------------------------------------
Quality as Received
Cont Fuel Coal State County Originating Quantity ------------------- Purch Price
Type Expir Type Type Dist Abbr No Location Received BTU Sulfur Ash Cents/MMBT
(1) (2) (3) (4)
---- ----- ---- ---- ---- ----- ------ ----------- -------- --- ------ ---- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12 C 06/95 BIT U 08 WV 059 Ashland 40.2 12772 0.67 8.70 181.00
13 C 12/95 BIT U 08 WV 059 Ashland 39.7 12945 0.66 8.25 163.62
14 C 06/97 BIT U 8 WV 045 Rum Creek 40.5 12363 0.74 12.00 170.91
15 C 12/97 BIT U 8 WV 059 Sprouse Creek 79.2 12803 0.68 7.50 182.64
Coal prices reported exclude $11,593,219.12 paid to NEEI for coal delivered to Brayton Point and Salem Harbor.
<FN>
(1) Coal = 1,000 tons (2) Coal per lb (3) and (4) Percent
Oil = 1,000 bbls Oil per gal
Gas = 1,000 Mcf Gas per cu ft
</FN>
</TABLE>
<PAGE>
<TABLE>
Exhibit j-4
<CAPTION>
Monthly Cost and Quality of Fuels for Electric Plants
FERC 429 Facsimile
<S> <C> <C>
01 Company-Plant Code 13433-1626
02 Month & Year of Report 05/95
03 Reporting Company New England Electric
04 Page Number 1
05 Plant Name Salem Harbor
06 Plant Location 24 Fort Ave., Salem, MA 01970
07 Person to be Contacted Fuel Dept.
Concerning Data Coal Group
Entered on this Form 25 Research Drive, Westboro, MA 01582
08 Telephone Number 508-389-3029 / 508-389-3227
09 Signature of Official
Submitting this Report s/ Mary E. O'Neil
10 Title Senior Fuel Analyst
11 Date Report Completed July 18, 1995 (Revised)
<CAPTION>
Purchases Coal Mines Only Source Data
--------- -------------------------- -------------------------------------------------------
Quality as Received
Cont Fuel Coal State County Originating Quantity ------------------- Purch Price
Type Expir Type Type Dist Abbr No Location Received BTU Sulfur Ash Cents/MMBT
(1) (2) (3) (4)
---- ----- ---- ---- ---- ----- ------ ----------- -------- --- ------ ---- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12 C 12/95 BIT U 45 IM 999 Cerrejon 32.5 12179 0.62 5.76 138.20
13 C 12/95 BIT S 50 IM 999 Diablo Paso 40.5 12635 0.76 7.16 191.97
14 C 12/97 BIT U 8 WV 059 Sprouse Creek 38.1 12483 0.64 8.27 185.94
<FN>
(1) Coal = 1,000 tons (2) Coal per lb (3) and (4) Percent
Oil = 1,000 bbls Oil per gal
Gas = 1,000 Mcf Gas per cu ft
</FN>
</TABLE>
<PAGE>
<TABLE>
Exhibit j-5
<CAPTION>
Monthly Cost and Quality of Fuels for Electric Plants
FERC 429 Facsimile
<S> <C> <C>
01 Company-Plant Code 13433-1619
02 Month & Year of Report 06/95
03 Reporting Company New England Electric
04 Page Number 1
05 Plant Name Brayton Point
06 Plant Location Brayton Point Road, Somerset, MA 02726
07 Person to be Contacted Fuel Dept.
Concerning Data Coal Group
Entered on this Form 25 Research Drive, Westboro, MA 01582
08 Telephone Number 508-389-3029 / 508-389-3227
09 Signature of Official
Submitting this Report s/ Mary E. O'Neil
10 Title Senior Fuel Analyst
11 Date Report Completed August 11, 1995
<CAPTION>
Purchases Coal Mines Only Source Data
--------- -------------------------- -------------------------------------------------------
Quality as Received
Cont Fuel Coal State County Originating Quantity ------------------- Purch Price
Type Expir Type Type Dist Abbr No Location Received BTU Sulfur Ash Cents/MMBT
(1) (2) (3) (4)
---- ----- ---- ---- ---- ----- ------ ----------- -------- --- ------ ---- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12 C 06/95 BIT U 08 WV 059 Ashland 40.3 12847 0.72 8.64 179.67
13 C 12/95 BIT U 08 WV 059 Ashland 40.0 12905 0.73 8.54 165.36
14 C 12/95 BIT S 50 IM 999 Diablo Paso 39.9 13102 0.60 4.96 195.20
15 C 03/98 BIT U 8 KY 159 Martiki 11.2 12710 0.74 6.58 175.80
16 C 03/98 BIT U 8 KY 159 Pontiki 28.9 12710 0.74 6.58 175.80
17 C 12/97 BIT U 8 WV 059 Sprouse Creek 40.3 12385 0.64 9.16 183.37
Coal prices reported exclude $4,359,315.71 paid to NEEI for coal delivered to Brayton Point and Salem Harbor.
<FN>
(1) Coal = 1,000 tons (2) Coal per lb (3) and (4) Percent
Oil = 1,000 bbls Oil per gal
Gas = 1,000 Mcf Gas per cu ft
</FN>
</TABLE>
<PAGE>
<TABLE>
Exhibit j-6
<CAPTION>
Monthly Cost and Quality of Fuels for Electric Plants
FERC 429 Facsimile
<S> <C> <C>
01 Company-Plant Code 13433-1626
02 Month & Year of Report 06/95
03 Reporting Company New England Electric
04 Page Number 1
05 Plant Name Salem Harbor
06 Plant Location 24 Fort Ave., Salem, MA 01970
07 Person to be Contacted Fuel Dept.
Concerning Data Coal Group
Entered on this Form 25 Research Drive, Westboro, MA 01582
08 Telephone Number 508-389-3029 / 508-389-3227
09 Signature of Official
Submitting this Report s/ Mary E. O'Neil
10 Title Senior Fuel Analyst
11 Date Report Completed August 11, 1995
<CAPTION>
Purchases Coal Mines Only Source Data
--------- -------------------------- -------------------------------------------------------
Quality as Received
Cont Fuel Coal State County Originating Quantity ------------------- Purch Price
Type Expir Type Type Dist Abbr No Location Received BTU Sulfur Ash Cents/MMBT
(1) (2) (3) (4)
---- ----- ---- ---- ---- ----- ------ ----------- -------- --- ------ ---- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12 C 12/98 BIT S 45 IM 999 El Cerrejon 51.3 12067 0.55 5.50 142.71
<FN>
(1) Coal = 1,000 tons (2) Coal per lb (3) and (4) Percent
Oil = 1,000 bbls Oil per gal
Gas = 1,000 Mcf Gas per cu ft
</FN>
</TABLE>
