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File No. 70-8803
CERTIFICATE OF NOTIFICATION
(Rule 24)
SECURITIES AND EXCHANGE COMMISSION
BY
GRANITE STATE ENERGY, INC.
In accordance with the order of the Securities and Exchange Commission
dated May 23, 1996, the following is a report for the third quarter of
1996:
1. Granite State Energy, Inc. (GS Energy), a New Hampshire Corporation
was formed on April 22, 1996. The corporation was capitalized on June
21, 1996, when one thousand shares of GS Energy common stock were issued
and sold to New England Electric System (NEES).
2. As of September 30, 1996 NEES had purchased 1,000 shares of GS
Energy common stock and made subordinated loans totaling $155,000 to GS
Energy.
3. As of September 30, 1996 GS Energy employed no permanent personnel
and during the third quarter of 1996 there were no individuals assigned
on a substantially full-time basis.
4. During the third quarter of 1996, GS Energy recorded an accrual for
revenues associated with kilowatt hours sold but not yet billed.
Provided in Exhibit D is the detail to kilowatt hours sold by customer
class.
5. Attached in Exhibits A through C are a balance sheet as of September
30, 1996, income statement and statement of cash flow for the quarter
ended September 30, 1996 and twelve months ended September 30, 1996.
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. 70-8803) to be signed on its behalf
by the undersigned officer thereunto duly authorized.
By: s/Howard W. McDowell
_________________________
Howard W. McDowell
Treasurer
Date: November 27, 1996
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EXHIBIT INDEX
Exhibit No. Description Page
- ----------- ----------- ----
A Balance Sheet at September 30, 1996 Filed
(Unaudited, subject to adjustment) herewith
B1 Statement of Income and Accumulated Filed
Deficit for the quarter ended herewith
September 30, 1996 (Unaudited,
subject to adjustment)
C1 Statement of Cash Flows for the Filed
quarter ended September 30, 1996 herewith
(Unaudited, subject to adjustment)
B2 Statement of Income and Accumulated Deficit Filed
For the Twelve Months ended September 30, 1996 herewith
(Unaudited, Subject to Adjustment)
C2 Statement of Cash Flows Filed
For the Twelve Months ended September 30, 1996 herewith
(Unaudited, Subject to Adjustment)
D Kilowatt Hours Sold Filed
For the Twelve Months ended September 30, 1996 herewith
(Unaudited, Subject to Adjustment)
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Exhibit A
GRANITE STATE ENERGY, INC.
Balance Sheet
As of September 30, 1996
(Unaudited, Subject to Adjustment)
ASSETS
- ------
Current assets:
Cash $39,191
Customer Accounts Receivable 40,626
Unbilled Revenue 63,000
Tax Benefit Receivable 53,644
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Total Assets $196,461
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LIABILITIES AND PARENT COMPANY'S INVESTMENT
- -------------------------------------------
Current liabilities:
Accounts payable to associated companies $140,086
Parent Company's Investment:
Common stock, par value $1 per share 1,000
Subordinated notes payable to parent 155,000
Accumulated Deficit (99,625)
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56,375
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Total Liabilities and Parent Company's Investment $196,461
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Exhibit B1
GRANITE STATE ENERGY, INC.
Statement of Income and Accumulated Deficit
For the Quarter ended September 30, 1996
(Unaudited, Subject to Adjustment)
INCOME
Operating Revenue $146,282
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EXPENSE
Purchased Electric Energy 154,158
Other Operating Expenses 145,228
Federal Income Tax (53,586)
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Total Operating Expenses 245,800
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Net Income/(Loss) (99,518)
Accumulated Deficit at beginning of period (107)
--------
Accumulated Deficit at end of period $(99,625)
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Exhibit C1
GRANITE STATE ENERGY, INC.
Statement of Cash Flows
For the Quarter Ended September 30, 1996
(Unaudited, Subject to Adjustment)
Operating Activities:
Net Income/(Loss) ($99,518)
Adjustments to reconcile net income/(loss) to net cash
provided by operating activities:
Increase in unbilled revenue (59,700)
Increase in tax benefit receivable (53,586)
Increase in accounts receivable (40,626)
Increase in accounts payable 136,621
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Net cash provided by operating activities (116,809)
Financing Activities:
Subordinated notes payable to parent-issues 155,000
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Net increase in cash and cash equivalents 38,191
Cash and cash equivalents at beginning of period 1,000
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Cash and cash equivalents at end of period $39,191
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Exhibit B2
GRANITE STATE ENERGY, INC.
Statement of Income and Accumulated Deficit
For the Twelve Months ended September 30, 1996
(Unaudited, Subject to Adjustment)
INCOME
Operating Revenue $149,582
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EXPENSE
Purchased Electric Energy 157,623
Other Operating Expenses 145,228
Federal Income Tax (53,644)
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249,207
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Net Income/(Loss) (99,625)
Retained Earnings at beginning of period 0
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Accumulated Deficit at end of period ($99,625)
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Exhibit C2
GRANITE STATE ENERGY, INC.
Statement of Cash Flows
For the Twelve Months ended September 30, 1996
(Unaudited, Subject to Adjustment)
Operating Activities:
Net Income/(Loss) ($99,625)
Adjustments to reconcile net income/(loss) to net cash
provided by operating activities:
Increase in unbilled revenue (63,000)
Increase in tax benefit receivable (53,644)
Increase in accounts receivable (40,626)
Increase in accounts payable 140,086
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Net cash provided by operating activities (116,809)
Financing Activities:
Issue of common stock 1,000
Subordinated notes payable to parent-issues 155,000
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Net cash provided by financing activities 156,000
Net increase in cash and cash equivalents 39,191
Cash and cash equivalents at inception 0
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Cash and cash equivalents at end of period $39,191
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Exhibit D
GRANITE STATE ENERGY, INC.
Kilowatt Hours Sold
For the Twelve Months ended September 30, 1996
(Unaudited, Subject to Adjustment)
CUSTOMER CLASS KILOWATT HOURS
Residential 4,066,104
Commercial 1,836,475
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Total 5,902,579
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