<PAGE> 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
third quarter of 1999:
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).
On June 25, 1998, New England Water Heater Co., Inc. (NEWH), an energy-related
company, became a wholly-owned subsidiary of NG in accordance with Rule 58 of
the Act. The company's financial statements are consolidated with NG. In the
fourth quarter of 1998, NEWH changed its name to NEWHC,Inc. Effective
September 19, 1999, substantially all of the assets of NEWH were sold to
Duperey Investments, Inc., an unaffiliated company.
NG entered into agreements with companies located in Canada, Michigan,
Illinois, Maryland, Delaware, Rhode Island, New York, and Virginia to provide
consulting services. A total of $256,000 in revenue was recognized in the
third quarter of 1999.
2.As of September 30, 1999, NEES had purchased 1,000 shares of NG common
stock and had made subordinated loans to NG totaling $12,704,000.
3.As of September 30, 1999, NG employed no permanent personnel. However,
during the three-month period ending September 30, 1999, 55 employees of
associated companies of NEES billed portions of their time to NG.
4.As of September 30, 1999, NG had not purchased or received from
associated companies of NEES any intellectual property.
<PAGE>
5.During the three-month period ended September 30, 1999, NG received
legal, financial, and other administrative services from New England Power
Service Company, amounting to $183,000.
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 revenue was recognized in the third quarter
of 1999.
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. An additional
investment of $750,000 was made in October 1998 in the form of 300,000 shares
of Series B Preferred Stock.
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. 70-7950/70-8555) 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: November 29, 1999
<PAGE>
EXHIBIT INDEX
Exhibit No. Description Page
- ----------- ----------- ----
A Balance Sheet at September 30, 1999 Filed
(Unaudited, subject to adjustment) herewith
B Statement of Income and Filed
Accumulated Deficit for the nine and twelve herewith
months ended September 30, 1999
(Unaudited, subject to adjustment)
C Statement of Cash Flows Filed
for the nine and twelve months ended herewith
September 30, 1999
(Unaudited, subject to adjustment)
<PAGE>Exhibit A
<TABLE>
NEES GLOBAL, INC.
Consolidated Balance Sheet
September 30, 1999
(Unaudited, Subject to Adjustment)
(thousands of dollars)
<CAPTION>
<S> <C>
ASSETS
- ------
Current assets:
Cash $ 494
Accounts receivable 159
Other current assets 19
------
Total current assets 672
------
Investments at cost:
Separation Technologies, Inc. 1,000
Nexus, Inc. 2,150
------
Total investments 3,150
------
Note receivable 4,000
------
Total assets $7,822
======
LIABILITIES AND PARENT COMPANY'S INVESTMENT
- -------------------------------------------
Current liabilities:
Accounts payable $ 65
Accrued taxes 3,613
------
Total current liabilities 3,678
Deferred credits and other liabilities 11
------
Parent company's investment
Subordinated notes payable to parent 8,352
Common stock, par value $1 per share 1
Other paid-in capital 4,353
Accumulated deficit (8,573)
------
Total parent company's investment 4,133
------
Total liabilities and parent company's investment $7,822
======
</TABLE>
<PAGE>Exhibit B
<TABLE>
NEES GLOBAL, INC.
Consolidated Statement of Income and Accumulated Deficit
For the Periods Ended September 30, 1999
(Unaudited, Subject to Adjustment)
(thousands of dollars)
<CAPTION>
<S> <C> <C>
Nine Twelve
Months Months
------ ------
INCOME
- ------
Rental water heater revenue $ 6,764 $ 9,143
Gain on sale of NEWHC,Inc. assets 3,389 3,389
Consulting revenue and other 672 880
Equity in earnings - HydroServ Group, LLC - (11)
-------- --------
Total income 10,825 13,401
EXPENSE
- -------
Operating expenses 4,407 6,651
Write-off of investment in:
Monitoring Technologies, Inc. - 475
Loss on sale of interest in AllEnergy Marketing Co., Inc. 220 220
Depreciation 1,558 2,334
Income taxes 2,800 2,049
-------- --------
Total expenses 8,985 11,729
-------- --------
Net income $ 1,840 $ 1,672
Accumulated deficit at beginning of period $(10,413) $(10,245)
-------- --------
Accumulated deficit at end of period $ (8,573) $ (8,573)
======== ========
</TABLE>
<PAGE>Exhibit C
<TABLE>
<CAPTION>
NEES GLOBAL, INC.
Statement of Cash Flows
For the Period Ended September 30, 1999
(Unaudited, Subject to Adjustment)
(thousands of dollars)
<S> <C> <C>
Nine Twelve Months Months
------ ------
Operating Activities:
Net income (loss) $ 1,840 $ 1,672
Adjustments to reconcile net income (loss) to net
cash provided by (used in) operating activities:
Depreciation 1,558 2,334
Gain on sale of NEWHC,Inc. assets (3,389) (3,389)
Loss on investments 220 695
Deferred income taxes (836) (370)
(Increase)/decrease in accounts receivable (289) (371)
(Increase)/decrease in other current assets 898 391
Increase/(decrease) in accounts payable (173) (192)
Increase/(decrease) in other current liabilities 3,213 3,147
Other, net 1,099 2,265
-------- --------
Net cash provided by (used in) operating activities $ 4,141 $ 6,182
-------- --------
Investing Activities:
Fixed asset expenditures $ (1,724) $ (2,647)
Investment in Nexus, Inc. - (750)
Investment in AllEnergy Marketing Co., LLC - (63)
Sale of interest in AllEnergy Marketing Co., LLC 456 456
Sale of New England Water Heater Co., Inc. 16,000 16,000
-------- --------
Net cash provided by (used in) investing activities $ 14,732 $ 12,996
-------- --------
Financing Activities:
Change in subordinated notes payable to parent $(18,974)
$(19,574)
-------- --------
Net cash provided by (used in) financing activities $(18,974)
$(19,574)
-------- --------
Net increase/(decrease) in cash and cash equivalents $ (101) $
(396)
Cash and cash equivalents at beginning of period 595 890
-------- --------
Cash and cash equivalents at end of period $ 494 $ 494
======== ========
</TABLE>
