SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 of the
Securities Exchange Act of 1934
Date of Earliest Event Reported: January 19, 2000
NEW ENGLAND ELECTRIC SYSTEM
(exact name of registrant as specified in charter)
Massachusetts 1-3446 04-1663060
(state or other (Commission (I.R.S. Employer
jurisdiction of File No.) Identification No.)
incorporation)
25 Research Drive, Westborough, Massachusetts 01582
(Address of principal executive offices)
(508) 389-2000
(Registrant's telephone number, including area code)
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Item 5. Other Events
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On January 19, 2000 New England Electric System announced that
it is examining strategic options for its wholly-owned
subsidiary, AllEnergy Marketing Company, L.L.C., including the
possible sale of the company. AllEnergy is engaged in retail
sales of energy, including natural gas, fuel oil, propane, and
electricity.
Item 7. Financial Statements and Exhibits
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(c) Exhibits
99. Press Release of New England Electric System
issued January 19, 2000.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this Current Report on
Form 8-K to be signed on its behalf by the undersigned thereunto
duly authorized.
NEW ENGLAND ELECTRIC SYSTEM
s/ John G. Cochrane
By
John G. Cochrane,
Vice President and Treasurer
Authorized Officer, and
Chief Accounting Officer
Date: January 21, 2000
The name "New England Electric System" means the trustee or
trustees for the time being (as trustee or trustees but not
personally) under an agreement and declaration of trust dated
January 2, 1926, as amended, which is hereby referred to, and a
copy of which as amended has been filed with the Secretary of The
Commonwealth of Massachusetts. Any agreement, obligation or
liability made, entered into or incurred by or on behalf of New
England Electric System binds only its trust estate, and no
shareholder, director, trustee, officer or agent thereof assumes
or shall be held to any liability therefor.
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EXHIBIT INDEX
Exhibit No. Description Page
- ----------- ----------- ----
1 Press Release of New Filed
England Electric System herewith
issued January 19, 2000
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FOR IMMEDIATE RELEASE: January 19, 2000
CONTACT: Jackie Barry Bob Seega
NEES NEES
508/389-3298 (508) 389-2178
NEES TO EXPLORE OPTIONS FOR ITS ALLENERGY MARKETING SUBSIDIARY
WESTBOROUGH, Mass., Jan. 19, 2000 New England Electric
System (NEES) today announced that it is examining strategic
options for its wholly-owned subsidiary, AllEnergy Marketing
Company, L.L.C., including the possible sale of the company.
AllEnergy is engaged in retail sales of energy, including natural
gas, fuel oil, propane, and electricity.
According to NEES President and Chief Executive Officer Rick
Sergel, this announcement underscores NEES's goal to focus on its
electricity delivery business, and its commitment to AllEnergy's
continued success.
"Since its formation in 1996, AllEnergy already has become
the largest unregulated retail supplier of natural gas in the
northeast, one of the region's leading home heating oil
companies, and an emerging force in the region's developing
competitive electricity marketplace," said Sergel. "We have
tremendous respect for the hard work and dedication of the people
responsible for AllEnergy's success, and believe this is the best
way to ensure that success continues over the long-term."
In September 1998, NEES completed the sale of substantially
all of its non-nuclear generating business. As a result, NEES's
primary business is now the transmission and distribution of
electricity. In December 1998, NEES announced that it would
merge with The National Grid Group plc (LSE, NYSE:NGG), owner and
operator of the transmission system in England and Wales, further
solidifying the company's commitment to its electricity delivery
business.
"The Federal Energy Regulatory Commission has made it clear
that the future of electricity transmission lies in Regional
Transmission Organizations governed by companies independent of
electricity marketing firms," Sergel stated. "Our focus now is
on completing the merger with National Grid, continuing to work
on being the best wires company in the northeast, and growing the
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size of our electricity delivery business. For these reasons,
investigating options for AllEnergy makes sound, strategic
business sense."
AllEnergy currently serves more than 125,000 customers and
generated revenues of approximately $450 million in 1999.
Headquartered in Waltham, Massachusetts, AllEnergy has sales
offices in Worcester, Massachusetts; Windsor, Connecticut;
Syracuse, New York; and Middlesex, New Jersey. Its principal
heating oil divisions include PAL Energy, headquartered in
Palmyra, New York; and Griffith Consumers Company, headquartered
in Cheverly, Maryland, and serving Washington, D.C. and parts of
Maryland, Delaware, Virginia, and West Virginia.
NEES has retained Merrill Lynch as its financial advisor in
connection with the examination of strategic options for
AllEnergy.
NEES (NYSE:NES) is a public utility holding company
headquartered in Westborough, Massachusetts. Its subsidiaries
are engaged in the transmission and distribution of electricity,
and the construction and leasing of telecommunications
infrastructure. NEES's local electric companies serve 1.3
million customers in Massachusetts, Rhode Island, and New
Hampshire.
