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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 first quarter of
1997:
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 March 31, 1997 NEES had purchased 1,000 shares of GS Energy
common stock and made subordinated loans totaling $405,000 to GS
Energy.
3. As of March 31, 1997 GS Energy employed no permanent personnel.
However, during the first quarter of 1997, the following individual
was assigned on a substantially full-time basis, to perform duties on
behalf of GS Energy:
Rosemary Caredeo
This person was an employee of Massachusetts Electric Company during
the period covered by the filing. The cost of service provided to GS
Energy reflects compensation of the individuals assigned and the
actual overhead costs of Massachusetts Electric Company.
4. During the first quarter of 1997, 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 March
31, 1997, income statements and statements of cash flow for the
quarter ended March 31, 1997 and twelve months ended March 31,
1997.
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: May 29, 1997
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EXHIBIT INDEX
Exhibit No. Description Page
- ----------- ----------- ----
A Balance Sheet at March 31, 1997 Filed
(Unaudited, subject to adjustment) herewith
B1 Statement of Income and Accumulated Filed
Deficit for the quarter ended herewith
March 31, 1997 (Unaudited,
subject to adjustment)
C1 Statement of Cash Flows for the Filed
quarter ended March 31, 1997 herewith
(Unaudited, subject to adjustment)
B2 Statement of Income and Accumulated Filed
Deficit for the twelve months ended herewith
March 31, 1997 (Unaudited, subject to
adjustment)
C2 Statement of Cash Flows for the Filed
twelve months ended March 31, 1997 herewith
(Unaudited, subject to adjustment)
D Kilowatt Hours Sold Filed
For the Quarter Ended March 31, 1997 herewith
(Unaudited, subject to adjustment)
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Exhibit A
GRANITE STATE ENERGY, INC.
Balance Sheet (Thousands of Dollars)
As of March 31, 1997
(Unaudited, Subject to Adjustment)
ASSETS
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Current assets:
Cash $108
Accounts receivable from associated companies 53
Customer accounts receivable 55
Unbilled revenue 19
Prepaid taxes 121
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Total assets $356
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LIABILITIES AND PARENT COMPANY'S INVESTMENT
- -------------------------------------------
Current liabilities:
Accounts payable to associated companies $175
Parent company's investment:
Common stock, par value $1 per share 1
Subordinated notes payable to parent 405
Accumulated deficit (225)
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181
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Total liabilities and parent company's investment $356
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Exhibit B1
GRANITE STATE ENERGY, INC.
Statement of Income and Accumulated Deficit
(Thousands of Dollars)
For the Quarter ended March 31, 1997
(Unaudited, Subject to Adjustment)
INCOME
Operating revenue $ 134
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EXPENSE
Purchased electric energy 184
Other operating expenses 55
Federal income tax (37)
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Total operating expenses 202
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Net income/(loss) (68)
Retained earnings at beginning of period (157)
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Accumulated deficit at end of period $(225)
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Exhibit C1
GRANITE STATE ENERGY, INC.
Statement of Cash Flows (Thousands of Dollars)
For the Quarter Ended March 31, 1997
(Unaudited, Subject to Adjustment)
Operating activities:
Net income/(loss) $(68)
Adjustments to reconcile net income/(loss) to net cash
provided by operating activities:
Decrease in unbilled revenue 44
Increase in prepaid taxes (37)
Increase in accounts payable 96
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Net cash provided by operating activities 35
Financing activities:
Subordinated notes payable to parent-issues 50
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Net increase in cash and cash equivalents 85
Cash and cash equivalents at beginning of period 23
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Cash and cash equivalents at end of period $108
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Exhibit B2
GRANITE STATE ENERGY, INC.
Statement of Income and Accumulated Deficit
(Thousands of Dollars)
For the Twelve Months ended March 31, 1997
(Unaudited, Subject to Adjustment)
INCOME
Operating revenue $ 433
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EXPENSES
Purchased electric energy 484
Other operating expenses 295
Federal income tax (121)
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657
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Net income/(loss) (225)
Retained earnings at beginning of period 0
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Accumulated deficit at end of period $(225)
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Exhibit C2
GRANITE STATE ENERGY, INC.
Statement of Cash Flows (Thousands of Dollars)
For the Twelve Months ended March 31, 1997
(Unaudited, Subject to Adjustment)
Operating activities:
Net income/(loss) $(225)
Adjustments to reconcile net income/(loss) to net cash
provided by operating activities:
Decrease in unbilled revenue (19)
Increase in prepaid taxes (121)
Increase in accounts receivable (108)
Increase in accounts payable 175
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Net cash provided by operating activities (298)
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Financing activities:
Issue of common stock 1
Subordinated notes payable to parent-issues 405
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Net cash provided by financing activities 406
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Net increase in cash and cash equivalents 108
Cash and cash equivalents at inception 0
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Cash and cash equivalents at end of period $108
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Exhibit D
GRANITE STATE ENERGY, INC.
Kilowatt Hours Sold
For the Twelve Months ended March 31, 1997
(Unaudited, Subject to Adjustment)
CUSTOMER CLASS KILOWATT HOURS
Residential 4,728,538
Commercial 3,203,254
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Total 7,931,792
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