<PAGE> File No. 70-8803
CERTIFICATE OF NOTIFICATION
(Rule 24)
SECURITIES AND EXCHANGE COMMISSION
BY
NEES Energy, Inc.
In accordance with the order of the Securities and Exchange Commission
dated May 23, 1996, the following is a report for the second quarter of fiscal
year 2001:
1.NEES Energy, Inc. (NEES Energy), a Massachusetts Corporation, was
formed on June 14, 1996. The corporation was capitalized on August 9, 1996
when one thousand shares of NEES Energy common stock were issued and sold to
New England Electric System (NEES). On March 22, 2000 NEES was acquired by
National Grid Group plc, and renamed National Grid USA. In conjunction with
the merger, the Company's accounting year changed from a calendar year to a
fiscal year beginning April 1 and ending March 31.
2.In connection with the merger of NEES and National Grid Group plc, as
of March 22, 2000, the estimated fair value of AllEnergy Marketing Co., LLC (a
wholly owned subsidiary of NEES Energy, Inc.) was recorded as an asset held
for sale. This estimate changed during the quarter due to intercompany
borrowings and repayments. Also, the estimate was revised to reflect the net
realizable value of the company as well as estimated operating losses incurred
during the holding period.
3.As of September 30, 2000, National Grid USA had purchased 1,000 shares
of NEES Energy common stock and made subordinated loans and other paid-in
capital contributions to NEES Energy totaling $175,522,000 and $10,655,000,
respectively.
4.As of September 30, 2000, NEES Energy had no permanent personnel and
during the second quarter of fiscal year 2001 there were no individuals
assigned on a substantially full-time basis.
5.During the second quarter of fiscal year 2001, NEES Energy had no
kilowatt hours sold or marketed.
6.Attached in Exhibits A through C are a consolidated balance sheet as of
September 30, 2000, consolidated income statements and statements of cash
flows for the quarter, six months and twelve months ended September 30, 2000.
<PAGE>
7.During the second quarter AllEnergy Marketing Company, LLC sold its
membership interest in Texas Liquids, LLC to an unaffiliated third party.
Subsequent to the end of the quarter certain of the assets of the Griffith
Consumers division and certain of the assets of the New York Fuels division
were sold to unaffiliated third parties.
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.
NEES Energy, Inc.
By: s/ John G. Cochrane
___________________________
John G. Cochrane
President and Treasurer
Date: November 29, 2000
