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File Nos. 70-7950/70-8555
CERTIFICATE OF NOTIFICATION
(Rule 24)
SECURITIES AND EXCHANGE COMMISSION
BY
NEES GLOBAL , INC. (NG)
(Formerly NEES GLOBAL TRANSMISSION, INC. (NGT))
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 1998:
1. Effective May 1, 1998, NGT changed its name to NEES Global, Inc.
(NG). NG is a Massachusetts corporation which was formed in
January 1992. NG was not capitalized until October 13, 1992 when
one thousand shares of NG common stock were issued to New England
Electric System (NEES).
NG 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. No revenue was recognized in the second quarter of
1998.
NG is a party to an agreement to provide construction related
services at a job site in Minnesota. Revenue in the amount of
$3,000 was recognized in the second quarter of 1998.
NG entered into agreements with companies located in Virginia,
Michigan, Maine, Illinois, Maryland, and Vermont to provide
consulting services. A total of $183,000 in revenue was
recognized in the second quarter of 1998.
In the second quarter of 1998, NG invested $153,000 to maintain a
one percent interest in AllEnergy Marketing Co., LLC., an
affiliated "energy-related company" within the meaning of Rule 58
of the Act.
2. As of June 30, 1998, NEES had purchased 1,000 shares of NG common
stock and had made subordinated loans totaling $14,749,000 to NG.
3. As of June 30, 1998, NG employed no permanent personnel. However,
during the three-month period ending June 30, 1998, 77 employees
of associated companies of NEES billed portions of their time to
NG.
4. As of June 30, 1998, NG had not purchased or received from
associated companies of NEES any intellectual property.
5. During the three-month period ending June 30, 1998, NG received
legal, financial, and other administrative services from New
England Power Service Company, amounting to $336,000.
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6. Attached in Exhibits A through C are the consolidated financial
statements of NG. These statements include a balance sheet, income
statement, and statement of cash flows. All significant
intercompany transactions have been eliminated.
In May 1995, NG 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. NG also provides
maintenance services for STI equipment on an as needed basis, for
which no revenue was recognized in the second quarter of 1998.
In July 1996, NG invested $475,000 in Monitoring Technologies,
Inc. This investment is in the form of 271,429 shares of Series E
convertible preferred stock.
In July 1997, NG invested $1,000,000 in Underwater Unlimited
Diving Services, Inc. in the form of 200,000 shares of Convertible
Nonvoting Preferred Stock.
In the second quarter of 1998, NG invested $20,000 in HydroServ
Group, LLC. The total initial capital contribution to date is
$210,000.
In August 1997, NG invested $1,400,000 in Nexus Energy Software,
Inc. in the form of 1,000,000 shares of Series A Preferred Stock.
On June 25, 1998, New England Water Heater Co., Inc., an energy-
related company, became a wholly-owned subsidiary of NG in
accordance with Rule 58 of the Act. The company's balance sheet
is consolidated with NG.
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, INC.
s/Anthony C. Pini
By: _________________________________
Anthony C. Pini
President
Date: September 1, 1998
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EXHIBIT INDEX
Exhibit No. Description Page
- ----------- ----------- ----
A Balance Sheet at June 30, 1998 Filed
(Unaudited, subject to adjustment) herewith
B Statement of Income and Filed
Accumulated Deficit for the twelve herewith
months ended June 30, 1998
(Unaudited, subject to adjustment)
C Statement of Cash Flows Filed
for the twelve months ended herewith
June 30, 1998
(Unaudited, subject to adjustment)
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Exhibit A
NEES GLOBAL, INC.
Consolidated Balance Sheet
June 30, 1998
(Unaudited, Subject to Adjustment)
(thousands of dollars)
ASSETS
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Current assets:
Cash $ 315
Accounts receivable, less reserves of $80,000 465
Accounts receivable from affiliates 3
Other current assets 304
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Total current assets 1,087
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Fixed assets:
Property and equipment 7,451
Accumulated depreciation (3,057)
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Total fixed assets 4,394
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Investments at cost:
Separation Technologies, Inc. 1,000
Monitoring Technologies, Inc. 475
Underwater Divers Unlimited, Inc. 1,000
Nexus, Inc. 1,400
AllEnergy Marketing Co., LLC 421
Investments at equity:
HydroServ Group, LLC 9
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Total investments 4,305
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Deferred charges and other assets 8
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Total assets $ 9,794
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LIABILITIES AND PARENT COMPANY'S INVESTMENT
- -------------------------------------------
Current liabilities:
Accounts payable $ 148
Accounts payable to affiliates 220
Miscellaneous accrued liabilities 35
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Total current liabilities 403
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Deferred credits and other liabilities 214
Parent company's investment:
Common stock, par value $1 per share 1
Subordinated notes payable to parent 14,749
Other paid-in capital 4,353
Accumulated deficit (9,926)
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Total parent company's investment 9,177
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Total liabilities and parent company's
investment $ 9,794
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Exhibit B
NEES GLOBAL, INC.
Consolidated Statement of Income and Accumulated Deficit
For the Twelve Months Ended June 30, 1998
(Unaudited, Subject to Adjustment)
(thousands of dollars)
INCOME
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Services rendered to non-affiliated companies $ 604
Equity in earnings - HydroServ Group, LLC (201)
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Total income 403
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EXPENSE
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Administrative and general expenses 3,724
Income taxes (1,136)
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Total expenses 2,588
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Net loss $(2,185)
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Accumulated deficit at beginning of period $(7,741)
Accumulated deficit at end of period $(9,926)
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Exhibit C
NEES GLOBAL, INC.
Statement of Cash Flows
For the Twelve Months Ended June 30, 1998
(Unaudited, Subject to Adjustment)
(thousands of dollars)
Operating Activities:
Net loss $(2,185)
Adjustments to reconcile net loss to
net cash provided by operating
activities:
(Increase)/decrease in accounts receivable 483
(Increase)/decrease in other current assets 206
Increase/(decrease) in accounts payable (178)
Increase/(decrease) in other current liabilities (1)
Other, net 216
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Net cash used in operating activities $(1,459)
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Investing Activities:
Investment in Underwater Divers Unlimited, Inc. $(1,000)
Investment in Nexus, Inc. (1,400)
Investment in HydroServ Group, LLC (210)
Investment in AllEnergy Marketing Co., LLC (421)
Investment in New England Water Co., Inc (4,228)
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Net cash used in investing activities $(7,259)
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Financing Activities:
Subordinated notes payable to parent-issues $ 4,575
Capital contribution from parent 4,353
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Net cash provided by financing activities $ 8,928
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Net increase/(decrease) in cash and cash equivalents $ 210
Cash and cash equivalents at beginning of period 105
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Cash and cash equivalents at end of period $ 315
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