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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 fourth 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 December 31, 1996 NEES had purchased 1,000 shares of GS Energy
common stock and made subordinated loans totaling $355,000 to GS
Energy.
3. As of December 31, 1996 GS Energy employed no permanent personnel.
However, during the fourth quarter of 1996, 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 fourth 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 December
31, 1996, income statements and statements of cash flow for the
quarter ended December 31, 1996 and twelve months ended December 31,
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: March 3, 1997
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EXHIBIT INDEX
Exhibit No. Description Page
- ----------- ----------- ----
A Balance Sheet at December 31, 1996 Filed
(Unaudited, subject to adjustment) herewith
B1 Statement of Income and Accumulated Filed
Deficit for the quarter ended herewith
December 31, 1996 (Unaudited,
subject to adjustment)
C1 Statement of Cash Flows for the Filed
quarter ended December 31, 1996 herewith
(Unaudited, subject to adjustment)
B2 Statement of Income and Accumulated Filed
Deficit for the twelve months ended herewith
December 31, 1996
C2 Statement of Cash Flows for the Filed
twelve months ended December 31, 1996 herewith
D Kilowatt Hours Sold Filed
For the Quarter Ended December 31, 1996 herewith
(Unaudited, Subject to Adjustment)
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Exhibit A
GRANITE STATE ENERGY, INC.
Balance Sheet
As of December 31, 1996
(Unaudited, Subject to Adjustment)
ASSETS
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Current assets:
Cash $23,049
Accounts receivable from associated companies 53,340
Customer accounts receivable 54,599
Unbilled revenue 63,000
Tax benefit receivable 84,300
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Total assets $278,288
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LIABILITIES AND PARENT COMPANY'S INVESTMENT
- -------------------------------------------
Current liabilities:
Accounts payable to associated companies $78,778
Parent company's investment:
Common stock, par value $1 per share 1,000
Subordinated notes payable to parent 355,000
Accumulated deficit (156,490)
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199,510
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Total liabilities and parent company's investment $278,288
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Exhibit B1
GRANITE STATE ENERGY, INC.
Statement of Income and Accumulated Deficit
For the Quarter ended December 31, 1996
(Unaudited, Subject to Adjustment)
INCOME
Operating revenue $149,014
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EXPENSE
Purchased electric energy 142,117
Other operating expenses 94,418
Federal income tax (30,656)
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Total operating expenses 205,879
---------
Net income/(loss) (56,865)
Accumulated deficit at beginning of period (99,625)
---------
Accumulated deficit at end of period $(156,490)
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Exhibit C1
GRANITE STATE ENERGY, INC.
Statement of Cash Flows
For the Quarter Ended December 31, 1996
(Unaudited, Subject to Adjustment)
Operating activities:
Net income/(loss) ($56,865)
Adjustments to reconcile net income/(loss) to net cash
provided by operating activities:
Increase in tax benefit receivable (30,656)
Increase in accounts receivable (67,313)
Increase in accounts payable (61,308)
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Net cash provided by operating activities (216,142)
Financing activities:
Subordinated notes payable to parent-issues 200,000
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Net increase in cash and cash equivalents (16,142)
Cash and cash equivalents at beginning of period 39,191
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Cash and cash equivalents at end of period $ 23,049
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Exhibit B2
GRANITE STATE ENERGY, INC.
Statement of Income and Accumulated Deficit
For the Twelve Months ended December 31, 1996
(Unaudited, Subject to Adjustment)
INCOME
Operating revenue $298,596
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EXPENSES
Purchased electric energy 299,740
Other operating expenses 239,646
Federal income tax (84,300)
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455,086
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Net income/(loss) (156,490)
Retained earnings at beginning of period 0
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Accumulated deficit at end of period ($156,490)
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Exhibit C2
GRANITE STATE ENERGY, INC.
Statement of Cash Flows
For the Twelve Months ended December 31, 1996
(Unaudited, Subject to Adjustment)
Operating activities:
Net income/(loss) ($156,490)
Adjustments to reconcile net income/(loss) to net cash
provided by operating activities:
Increase in unbilled revenue (63,000)
Increase in tax benefit receivable (84,300)
Increase in accounts receivable (107,939)
Increase in accounts payable 78,778
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Net cash provided by operating activities (332,951)
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Financing activities:
Issue of common stock 1,000
Subordinated notes payable to parent-issues 355,000
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Net cash provided by financing activities 356,000
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Net increase in cash and cash equivalents 23,049
Cash and cash equivalents at inception 0
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Cash and cash equivalents at end of period $23,049
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Exhibit D
GRANITE STATE ENERGY, INC.
Kilowatt Hours Sold
For the Twelve Months ended December 31, 1996
(Unaudited, Subject to Adjustment)
CUSTOMER CLASS KILOWATT HOURS
Residential 7,517,975
Commercial 4,549,238
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Total 12,067,213
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