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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 first 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 first quarter.
NG is a party to an agreement to provide construction
related services at a job site in Minnesota. Revenue
in the amount of $49,000 was recognized in the first
quarter of 1998.
NG entered intoagreements with companies located in
Iowa, Michigan, Missouri, Illinois, Canada, and the
District of Columbia to provide consulting services. A
total of $86,000 in revenue was recognized in the first
quarter of 1998.
In the first quarter of 1998, NG invested $105,000 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 March 31, 1998, NEES had purchased 1,000 shares
of NG common stock and had made subordinated loans
totaling $13,999,000 to NG.
3. As of March 31, 1998, NG employed no permanent
personnel. However, during the three-month period
ending March 31, 1998, 86 employees of associated
companies of NEES billed portions of their time to NG.
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4. As of March 31, 1998, NG had not purchased or received
from associated companies of NEES any intellectual
property.
5. During the three-month period ending March 31, 1998,
NG received legal, financial, and other administrative
services from New England Power Service Company,
amounting to $700,000.
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
revenues were recognized in the first 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 first quarter of 1998, NG invested $60,000 in
HydroServ Group, LLC. The total initial capital
contribution to date is $190,000.
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.
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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, INC.
s/John G. Cochrane
By: _________________________________
John G. Cochrane
Treasurer
Date: June 1, 1998
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EXHIBIT INDEX
Exhibit No. Description Page
- ----------- ----------- ----
A Balance Sheet at March 31, 1998 Filed
(Unaudited, subject to adjustment) herewith
B Statement of Income and Filed
Accumulated Deficit for the twelve herewith
months ended March 31, 1998
(Unaudited, subject to adjustment)
C Statement of Cash Flows Filed
for the twelve months ended herewith
March 31, 1998
(Unaudited, subject to adjustment)
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Exhibit A
NEES GLOBAL, INC.
Balance Sheet
March 31, 1998
(Unaudited, Subject to Adjustment)
(thousands of dollars)
ASSETS
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Current assets:
Cash $ 95
Accounts receivable 394
Accounts receivable from affiliates 37
Prepayments 91
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Total current assets 617
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Investments @ cost:
Separation Technologies, Inc. 1,000
Monitoring Technologies, Inc. 475
Underwater Divers Unlimited, Inc. 1,000
Nexus, Inc. 1,400
AllEnergy Marketing Co., LLC 268
Investments @ equity:
HydroServ Group, LLC 32
Deferred charges and other assets 0
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Total other assets 4,175
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Total assets $ 4,792
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LIABILITIES AND PARENT COMPANY'S INVESTMENT
- -------------------------------------------
Current liabilities:
Accounts payable $ 38
Accounts payable to affiliates 223
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Total liabilities 261
Parent company's investment:
Common stock, par value $1 per share 1
Subordinated notes payable to parent 13,999
Accumulated deficit (9,469)
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Total parent company's investment 4,531
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Total liabilities and parent company's
investment $ 4,792
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Exhibit B
NEES GLOBAL, INC.
Statement of Income and Accumulated Deficit
For the Twelve Months Ended March 31, 1998
(Unaudited, Subject to Adjustment)
(thousands of dollars)
INCOME
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Services rendered to non-affiliated companies $ 497
Equity in Earnings - HydroServ Group, LLC (158)
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Total Income $ 339
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EXPENSE
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Administrative and General Expenses $ 4,584
Income taxes (1,210)
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Total Expenses 3,374
Net Loss (3,035)
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Accumulated deficit at beginning of period (6,434)
Accumulated deficit at end of period $(9,469)
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Exhibit C
NEES GLOBAL, INC.
Statement of Cash Flows
For the Twelve Months Ended March 31, 1998
(Unaudited, Subject to Adjustment)
(thousands of dollars)
Operating Activities:
Net loss $(3,035)
Adjustments to reconcile net loss to
net cash provided by operating
activities:
Deferred income taxes (17)
(Increase)/decrease in accounts receivable 372
(Increase)/decrease in prepayments 702
Increase/(decrease) in accounts payable (120)
Other, net 158
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Net cash used in operating activities $(1,940)
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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 (190)
Investment in AllEnergy Marketing Co., LLC (268)
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Net cash used in investing activities $(2,858)
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Financing Activities:
Subordinated notes payable to parent-issues $ 4,850
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Net cash provided by financing activities $ 4,850
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Net increase/(decrease) in cash and cash
equivalents $ 52
Cash and cash equivalents at beginning of period 43
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Cash and cash equivalents at end of period $ 95
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