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File Nos. 70-7950/70-8555
CERTIFICATE OF NOTIFICATION
(Rule 24)
SECURITIES AND EXCHANGE COMMISSION
BY
NEES GLOBAL TRANSMISSION, INC. (NGT)
(Formerly New England Electric Resources, Inc. (NEERI))
In accordance with the orders of the Securities and Exchange
Commission dated September 4, 1992 and May 15, 1995, the
following is a report for the second quarter of 1997:
1. Effective July 1, 1997, NEERI changed its name to NEES
Global Transmission, Inc. (NGT). NGT is a
Massachusetts corporation which was formed in January
1992. NGT was not capitalized until October 13, 1992
when one thousand shares of NGT 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, NGT provided
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 agreement
provided for billing over a three year period at
$25,070 per month. As of May 31, 1997, the balance was
paid in full.
NGT is a party to an agreement with a company located
in Pennsylvania to provide ongoing work as a
subcontractor for electric meter retrofit services.
The work took place in Massachusetts. $70,000 was
recognized in the second quarter.
NGT is a party to three agreements to provide
construction related services at job sites in
Massachusetts and Minnesota. A total of $10,000 was
recognized under these contracts in the second quarter
of 1997.
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2. As of June 30, 1997, NEES had purchased 1,000 shares of
NGT common stock and made subordinated loans totaling
$10,200,000 to NGT.
3. As of June 30, 1997, NGT employed no permanent
personnel. However, during the three month period
ending June 30, 1997, 81 employees of associated
companies of NEES billed portions of their time to NGT.
4. As of June 30, 1997, NGT had not purchased or received
from associated companies of NEES any intellectual
property.
5. During the three month period ending June 30, 1997, NGT
received legal, financial, and other administrative
services from New England Power Service Company,
amounting to $847,000.
6. In July, 1996 NEERI International, a wholly-owned
subsidiary of NGT, was formed under the laws of the
Cayman Islands. NGT owns two shares of NEERI
International, which will serve as a Project Parent for
prospective EWG/FUCO investments under File No.
70-8783. NEERI International has no employees. In the
quarter ending June 30, 1997, NEERI International had
no revenues, but had $717,000 in expenses related to
FUCO project development.
7. Attached in Exhibits A through C are the consolidated
financial statements of NGT. These statements include a
balance sheet, income statement, and statement of cash
flows. All significant intercompany transactions have
been eliminated.
In May, 1995 NGT invested $1,000,000 in Separation
Technologies, Inc. (STI). This investment is in the
form of 153,846 shares of 6% cumulative convertible
preferred stock. NGT also provides maintenance
services for STI equipment on an as needed basis, for
which no revenues were recognized in the second quarter
of 1997.
In July, 1996 NGT invested $475,000 in Monitoring
Technologies, Inc. This investment is in the form of
271,429 shares of Series E convertible preferred stock.
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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 Nos. 70-7950 and
70-8555) to be signed on its behalf by the undersigned officer
thereunto duly authorized.
NEES GLOBAL TRANSMISSION, INC.
s/John G. Cochrane
By: _________________________________
John G. Cochrane
Treasurer
Date: August 27, 1997
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EXHIBIT INDEX
Exhibit No. Description Page
- ----------- ----------- ----
A Balance Sheet at June 30, 1997 Filed
(Unaudited, subject to adjustment) herewith
B Statement of Income and Accumulated Filed
Deficit for the twelve months ended herewith
June 30, 1997 (Unaudited,
subject to adjustment)
C Statement of Cash Flows for the Filed
twelve months ended June 30, 1997 herewith
(Unaudited, subject to adjustment)
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Exhibit A
NEES GLOBAL TRANSMISSION, INC.
Balance Sheet
June 30, 1997
(Unaudited, Subject to Adjustment)
(thousands of dollars)
ASSETS
- ------
Current assets:
Cash $ 105
Accounts receivable 279
Accounts receivable from associated companies 582
Prepayments 449
-------
Total current assets 1,415
-------
Investment in Separation Technologies, Inc.,
at cost 1,000
Investment in Monitoring Technologies, Inc.,
at cost 475
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Total other assets 1,475
-------
Total assets $ 2,890
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LIABILITIES AND PARENT COMPANY'S INVESTMENT
- -------------------------------------------
Current liabilities:
Accounts payable to associated companies $ 40
Accounts payable 415
Taxes payable 1
-------
Total liabilities 456
Parent company's investment:
Common stock, par value $1 per share 1
Subordinated notes payable to parent 10,174
Accumulated deficit (7,741)
-------
Total parent company's investment 2,434
-------
Total liabilities and parent company's
investment $ 2,890
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Exhibit B
NEES GLOBAL TRANSMISSION, INC.
Statement of Income and Accumulated Deficit
For the Twelve Months Ended June 30, 1997
(Unaudited, Subject to Adjustment)
(thousands of dollars)
INCOME
- ------
Services rendered to nonassociated companies $ 1,464
-------
Total Income $ 1,464
-------
EXPENSE
- -------
Administrative and General Expenses $ 8,320
Income taxes (2,366)
-------
Total Expenses 5,954
Net Income/(Loss) $(4,490)
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Accumulated deficit at beginning of period (3,251)
Accumulated deficit at end of period $(7,741)
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Exhibit C
NEES GLOBAL TRANSMISSION, INC.
Statement of Cash Flows
For the Twelve Months Ended June 30, 1997
(Unaudited, Subject to Adjustment)
(thousands of dollars)
Operating Activities:
Net loss $(4,490)
Adjustments to reconcile net loss to
net cash provided by operating
activities:
Deferred income taxes (113)
(Increase)/decrease in accounts receivable (370)
(Increase)/decrease in prepayments 183
Increase/(decrease) in accounts payable 275
Increase/(decrease) in taxes payable 1
-------
Net cash used in operating activities $(4,514)
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Investing Activities:
Investment in Monitoring Technologies, Inc. $ (475)
-------
Net cash used in investing activities $ (475)
=======
Financing Activities:
Subordinated notes payable to parent-issues $ 5,000
-------
Net cash provided by financing activities $ 5,000
=======
Net increase/(decrease) in cash and cash
equivalents $ 11
Cash and cash equivalents at beginning of period 94
-------
Cash and cash equivalents at end of period $ 105
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