<PAGE>
File No. 70-8803
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
AMENDMENT NO. 2
TO
FORM U-1
APPLICATION/DECLARATION
UNDER
THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
NEW ENGLAND ELECTRIC SYSTEM
(Name of company filing this statement)
25 Research Drive
Westborough, Massachusetts 01582
(Address of principal executive offices)
NEW ENGLAND ELECTRIC SYSTEM
(Name of top registered holding company parent of applicant)
Michael E. Jesanis Robert King Wulff
Treasurer Corporation Counsel
25 Research Drive 25 Research Drive
Westborough, Massachusetts 01582 Westborough, Massachusetts 01582
(Names and addresses of agents for service)
<PAGE>
Item 6(a) is hereby amended by supplying the following exhibits:
G-1 Financial Data Schedule for NEES (Parent Company Only)
G-2 Financial Data Schedule for NEES (Consolidated)
Item 6(b) is hereby amended by supplying the following financial statements:
1-A Balance Sheet of NEES at December 31, 1995,
Actual (Parent Company Only) (Pro Forma not
included since formation of new companies)
1-B Statement of Income and Retained Earnings
for NEES for twelve months ended December 31,
1995, Actual (Parent Company Only) (Pro Forma
not included since formation of new companies)
2-A Consolidated Balance Sheet of NEES at
December 31, 1995, Actual (Pro Forma not
included since formation of new companies)
2-B Statement of Consolidated Income and Retained
Earnings for NEES for twelve months ended
December 31, 1995, Actual (Pro Forma not
included since formation of new companies)
<PAGE>
SIGNATURE
---------
Pursuant to the requirements of the Public Utility Holding Company Act
of 1935, the undersigned Company has duly caused this Amendment No. 2 to its
Application/Declaration on Form U-1 (Commission's File No. 70-8803) to be
signed on its behalf, as indicated by the undersigned officer thereunto duly
authorized.
NEW ENGLAND ELECTRIC SYSTEM
s/Michael E. Jesanis
By
Michael E. Jesanis, Treasurer
Date: April 26, 1996
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.
<PAGE>
EXHIBIT INDEX
Exhibit No. Description Page
- ----------- ------------ ------
G-1 Financial Data Schedule for Filed herewith
NEES (Parent Company only)
G-2 Financial Data Schedule for Filed herewith
NEES (Consolidated)
Financial
Statement No. Description Page
- ------------- ----------- ----
1-A Balance Sheet of NEES at December 31, Filed herewith
1995, Actual (Parent Company only)
(Pro Forma not included since
formation of new companies)
1-B Statement of Income and Retained Filed herewith
Earnings for NEES for twelve months
ended December 31, 1995, Actual
(Parent Company only) (Pro Forma not
included since formation of new companies)
2-A Consolidated Balance Sheet of NEES Filed herewith
at December 31, 1995, Actual (Pro
Forma not included since formation
of new companies)
2-B Statement of Consolidated Income and Filed herewith
Retained Earnings for NEES for twelve
months ended December 31, 1995, Actual
(Pro Forma not included since formation
of new companies)
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<PAGE>
<ARTICLE> OPUR1
<LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION
EXTRACTED FROM THE BALANCE SHEET AND RELATED STATEMENTS
OF INCOME, RETAINED EARNINGS AND CASH FLOWS OF THE NEW
ENGLAND ELECTRIC SYSTEM (PARENT COMPANY), AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
<CIK> 0000071297
<NAME> New England Electric System
<MULTIPLIER> 1,000
<S> <C>
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> DEC-31-1995
<PERIOD-TYPE> 12-MOS
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 0
<OTHER-PROPERTY-AND-INVEST> 1,637,727
<TOTAL-CURRENT-ASSETS> 41,135
<TOTAL-DEFERRED-CHARGES> 3,021
<OTHER-ASSETS> 0
<TOTAL-ASSETS> 1,681,883
<COMMON> 64,969
<CAPITAL-SURPLUS-PAID-IN> 736,567
<RETAINED-EARNINGS> 831,529
<TOTAL-COMMON-STOCKHOLDERS-EQ> 1,633,065
0
0
<LONG-TERM-DEBT-NET> 0
<SHORT-TERM-NOTES> 0
<LONG-TERM-NOTES-PAYABLE> 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0
<LONG-TERM-DEBT-CURRENT-PORT> 0
0
<CAPITAL-LEASE-OBLIGATIONS> 0
<LEASES-CURRENT> 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 48,818
<TOT-CAPITALIZATION-AND-LIAB> 1,681,883
<GROSS-OPERATING-REVENUE> 0
<INCOME-TAX-EXPENSE> (555)
<OTHER-OPERATING-EXPENSES> 4,689
<TOTAL-OPERATING-EXPENSES> 4,134
<OPERATING-INCOME-LOSS> (4,134)
<OTHER-INCOME-NET> 209,300
<INCOME-BEFORE-INTEREST-EXPEN> 205,166
<TOTAL-INTEREST-EXPENSE> 329
<NET-INCOME> 204,837
0
<EARNINGS-AVAILABLE-FOR-COMM> 204,837
<COMMON-STOCK-DIVIDENDS> 152,354
<TOTAL-INTEREST-ON-BONDS> 0
<CASH-FLOW-OPERATIONS> 0
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
</FN>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> OPUR1
<LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION
EXTRACTED FROM THE CONSOLIDATED BALANCE SHEET AND RELATED
CONSOLIDATED STATEMENTS OF INCOME, RETAINED EARNINGS AND
CASH FLOWS OF NEW ENGLAND ELECTRIC SYSTEM, AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
<CIK> 0000071297
<NAME> New England Electric System
<MULTIPLIER> 1,000
<S> <C>
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> DEC-31-1995
<PERIOD-TYPE> 12-MOS
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 3,855,902
<OTHER-PROPERTY-AND-INVEST> 408,820
<TOTAL-CURRENT-ASSETS> 508,794
<TOTAL-DEFERRED-CHARGES> 417,360 <F1>
<OTHER-ASSETS> 0
<TOTAL-ASSETS> 5,190,876
<COMMON> 64,970
<CAPITAL-SURPLUS-PAID-IN> 736,823
<RETAINED-EARNINGS> 831,529
<TOTAL-COMMON-STOCKHOLDERS-EQ> 1,631,779 <F3>
0
147,016 <F2>
<LONG-TERM-DEBT-NET> 1,675,170
<SHORT-TERM-NOTES> 0
<LONG-TERM-NOTES-PAYABLE> 0
<COMMERCIAL-PAPER-OBLIGATIONS> 203,250
<LONG-TERM-DEBT-CURRENT-PORT> 23,960
0
<CAPITAL-LEASE-OBLIGATIONS> 0
<LEASES-CURRENT> 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 1,509,701
<TOT-CAPITALIZATION-AND-LIAB> 5,190,876
<GROSS-OPERATING-REVENUE> 2,271,712
<INCOME-TAX-EXPENSE> 128,340
<OTHER-OPERATING-EXPENSES> 1,819,944
<TOTAL-OPERATING-EXPENSES> 1,948,284
<OPERATING-INCOME-LOSS> 323,428
<OTHER-INCOME-NET> 12,098
<INCOME-BEFORE-INTEREST-EXPEN> 335,526
<TOTAL-INTEREST-EXPENSE> 114,175
<NET-INCOME> 204,757
8,690 <F2>
<EARNINGS-AVAILABLE-FOR-COMM> 204,757
<COMMON-STOCK-DIVIDENDS> 152,273
<TOTAL-INTEREST-ON-BONDS> 108,365
<CASH-FLOW-OPERATIONS> 469,853
<EPS-PRIMARY> $3.15
<EPS-DILUTED> $3.15
<FN>
<F1> Total deferred charges includes other assets and accrued Yankee Atomic
costs.
<F2> Preferred stock reflects preferred stock of subsidiaries. Preferred
stock dividends reflect
preferred stock dividends of subsidiaries.
<F3> Total common stockholders equity is reflected net of treasury stock at
cost.
</FN>
<PAGE>
<TABLE>
Financial Statement 1-A
NEW ENGLAND ELECTRIC SYSTEM
(Parent Company Only)
Balance Sheet
At December 31, 1995
(Unaudited)
ASSETS
------
<CAPTION>
(In Thousands)
<S> <C>
Investments:
Common stocks of subsidiaries, at equity $1,609,811
Notes of subsidiaries 24,290
Other investments 3,626
----------
Total investments 1,637,727
----------
Current assets:
Cash 201
Temporary cash investments - subsidiary companies 3,600
Accounts receivable 107
Interest and dividends receivable of subsidiaries 37,211
Other current assets 16
----------
Total current assets 41,135
----------
Deferred federal income taxes 3,021
----------
$1,681,883
==========
CAPITALIZATION AND LIABILITIES
------------------------------
Common share equity:
Common shares, par value $1 per share:
Authorized - 150,000,000 shares
Issued - 64,969,652 shares $ 64,969
Paid-in capital 736,567
Retained earnings (including $605,102,000 of
undistributed subsidiary earnings) 831,529
----------
Total common share equity 1,633,065
----------
Current liabilities:
Accounts payable (including $133,000 to subsidiaries) 6,878
Other accrued expenses 8
Dividends payable 34,797
----------
Total current liabilities 41,683
----------
Deferred credits 7,135
----------
$1,681,883
==========
</TABLE>
<PAGE>
<TABLE>
Financial Statement 1-B
NEW ENGLAND ELECTRIC SYSTEM
(Parent Company Only)
Statement of Income
Twelve Months Ended December 31, 1995
(Unaudited)
<CAPTION>
(In Thousands)
<S> <C>
Equity in earnings of subsidiaries $ 208,578
Interest income - subsidiaries 603
---------
Total income from subsidiaries 209,181
Other income 119
---------
Total income 209,300
Corporate and fiscal expenses (includes $1,720,000
for cost of services billed by an affiliated company) 4,689
Federal income taxes (555)
---------
Income before interest 205,166
Interest 329
---------
Net income $ 204,837
=========
Statement of Retained Earnings
Retained earnings at beginning of period $ 779,046
Net income 204,837
Dividends declared on common shares (152,354)
---------
Retained earnings at end of period $ 831,529
=========
</TABLE>
<PAGE>
Financial Statement 2-A
New England Electric System and Subsidiaries
Consolidated Balance Sheets
At December 31, 1995(thousands of dollars)
<TABLE>
<CAPTION>
Assets 1995
----------
<S> <C>
Utility plant, at original cost $5,480,001
Less accumulated provisions for depreciation and
amortization 1,710,991
----------
3,769,010
Net investment in Seabrook 1 under rate
settlement 15,210
Construction work in progress 71,682
----------
Net utility plant 3,855,902
----------
Oil and gas properties, at full cost 1,266,290
Less accumulated provision for amortization 1,032,777
----------
Net oil and gas properties 233,513
----------
Investments:
Nuclear power companies, at equity 47,056
Other subsidiaries, at equity 40,259
Other investments 87,992
----------
Total investments 175,307
----------
Current assets:
Cash 7,064
Accounts receivable, less reserves of $18,308
and $15,095 284,033
Unbilled revenues 66,300
Fuel, materials, and supplies, at average cost 73,724
Prepaid and other current assets 77,673
----------
Total current assets 508,794
----------
Deferred charges and other assets 417,360
----------
$5,190,876
===========
Capitalization and Liabilities
Capitalization (see accompanying statements):
Common share equity $1,631,779
Minority interests in consolidated subsidiaries 48,912
Cumulative preferred stock of subsidiaries 147,016
Long-term debt 1,675,170
----------
Total capitalization 3,502,877
----------
Current liabilities:
Long-term debt due within one year 23,960
Short-term debt 203,250
Accounts payable 157,486
Accrued taxes 15,894
Accrued interest 27,455
Dividends payable 38,683
Other current liabilities 73,104
----------
Total current liabilities 539,832
----------
Deferred federal and state income taxes 780,451
Unamortized investment tax credits 93,408
Other reserves and deferred credits 274,308
Commitments and contingencies
----------
$5,190,876
==========
</TABLE>
<PAGE>
Financial Statement 2-B
New England Electric System and Subsidiaries
Statements of Consolidated Income
Year ended December 31, 1995 (thousands of dollars, except per share data)
<TABLE>
<CAPTION>
1995
----------
<S> <C>
Operating revenue $2,271,712
----------
Operating expenses:
Fuel for generation 237,498
Purchased electric energy 548,370
Other operation 500,721
Maintenance 136,058
Depreciation and amortization 264,666
Taxes, other than income taxes 132,631
Income taxes 128,340
----------
Total operating expenses 1,948,284
----------
Operating income 323,428
Other income:
Allowance for equity funds used
during construction 7,852
Equity in income of generating
companies 10,552
Other income (expense), net (6,306)
----------
Operating and other income 335,526
----------
Interest:
Interest on long-term debt 108,365
Other interest 19,826
Allowance for borrowed funds used
during construction (14,016)
----------
Total interest 114,175
----------
Income after interest 221,351
Preferred dividends of subsidiaries 8,690
Minority interests 7,904
----------
Net income $ 204,757
----------
Average common shares 64,944,187
Per share data:
Net income $ 3.15
Dividends declared $ 2.345
Statements of Consolidated Retained Earnings
Year ended December 31, 1995 (thousands of dollars)
1995
----------
Retained earnings at beginning
of year $ 779,045
Net income 204,757
Dividends declared on common
shares (152,273)
Premium on redemption of
preferred stock of
subsidiaries
----------
Retained earnings at end of year $ 831,529
</TABLE>
