<PAGE>
FORM U-13-60
Mutual and Subsidiary Service Companies
Revised February 7, 1980
ANNUAL REPORT
For the Period
Beginning January 1, 1999 and Ending December 31, 1999
To The
U.S. SECURITIES AND EXCHANGE COMMISSION
Of
NEW ENGLAND POWER SERVICE COMPANY
A Subsidiary Service Company
Date of Incorporation: September 5, 1935
State or Sovereign Power under which Incorporated or Organized:
The Commonwealth of Massachusetts
Location of Principal Executive Offices of Reporting Company:
25 Research Drive
Westborough, MA 01582
Name, title, and address of officer to whom correspondence concerning this
report should be addressed:
K. O. Nuey,Jr.
Vice President and Controller
25 Research Drive
Westborough, MA 01582
Name of Principal Holding Company Whose Subsidiaries are served by
Reporting Company:
National Grid USA, successor to
New England Electric System
SEC 1926 (6-82)
<PAGE>Page 2
INSTRUCTIONS FOR USE OF FORM U-13-60
1. Time of Filing Rule 94 provides that on or before the first day of
May in each calendar year, each mutual service company and each subsidiary
service company as to which the Commission shall have made a favorable finding
pursuant to Rule 88, and every service company whose application for approval
or declaration pursuant to Rule 88 is pending shall file with the Commission
an annual report on Form U-13-60 and in accordance with the Instructions for
that form.
2. Number of Copies Each annual report shall be filed in duplicate.
The company should prepare and retain at least one extra copy for itself in
case correspondence with reference to the report become necessary.
3. Period Covered by Report The first report filed by any company
shall cover the period from the date the Uniform System of Accounts was
required to be made effective as to that company under Rules 82 and 93 to the
end of that calendar year. Subsequent reports should cover a calendar year.
4. Report Format Reports shall be submitted on the forms prepared by
the Commission. If the space provided on any sheet of such form is
inadequate, additional sheets may be inserted of the same size as a sheet of
the form or folded to such size.
5. Money Amounts Displayed All money amounts required to be shown in
financial statements may be expressed in whole dollars, in thousands of
dollars or in hundred thousands of dollars, as appropriate and subject to
provisions of Regulation S-X (Section 210.3-01(b)).
6. Deficits Displayed Deficits and other like entries shall be indicated
by the use of either brackets or a parenthesis with corresponding reference in
footnotes. (Regulation S-X, Section 210.3-01(c))
7. Major Amendments or Corrections Any company desiring to amend or
correct a major omission or error in a report after it has been filed with the
Commission shall submit an amended report including only those pages,
schedules, and entries that are to be amended or corrected. A cover letter
shall be submitted requesting the Commission to incorporate the amended report
changes and shall be signed by a duly authorized officer of the company.
8. Definitions Definitions contained in Instruction 01-8 to the
Uniform System of Accounts for Mutual Service Companies and Subsidiary Service
Companies, Public Utility Holding Company Act of 1935, as amended February 2,
1979 shall be applicable to words or terms used specifically within this Form
U-13-60.
9. Organization Chart The service company shall submit with each
annual report a copy of its current organization chart.
10. Methods of Allocation The service company shall submit with each
annual report a listing of the currently effective methods of allocation being
used by the service company and on file with the Securities and Exchange
Commission pursuant to the Public Utility Holding Company Act of 1935.
11. Annual Statement of Compensation for Use of Capital Billed The
service company shall submit with each annual report a copy of the annual
statement supplied to each associate company in support of the amount of
compensation for use of capital billed during the calendar year.
<PAGE>Page 3
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNTS
Schedule or Page
Description of Schedules and Accounts Account No. Number
COMPARATIVE BALANCE SHEET Schedule I 4-5
Service company property Schedule II 6-7
Accumulated provision for depreciation
and amortization of service company
property Schedule III 8
Investments Schedule IV 9
Accounts receivable from associate
companies Schedule V 10
Fuel stock expenses undistributed Schedule VI 11
Stores expense undistributed Schedule VII 12
Miscellaneous current and accrued assets Schedule VIII 13
Miscellaneous deferred debits Schedule IX 14
Research, development, or demonstration
expenditures Schedule X 15
Proprietary capital Schedule XI 16
Long-term debt Schedule XII 17
Current and accrued liabilities Schedule XIII 18
Notes to financial statements Schedule XIV 19
COMPARATIVE INCOME STATEMENT Schedule XV 20
Analysis of billing - associate
companies Account 457 21
Analysis of billing - nonassociate
companies Account 458 22
Analysis of charges for service
- associate and nonassociate companies Schedule XVI 23
Schedule of expense by department or
service function Schedule XVII 24-26
Departmental analysis of salaries Account 920 27
Outside services employed Account 923 28-30
Employee pensions and benefits Account 926 31
General advertising expenses Account 930.1 32
Miscellaneous general expenses Account 930.2 33
Rents Account 931 34
Taxes other than income taxes Account 408 35
Donations Account 426.1 36
Other deductions Account 426.5 37
Notes to statement of income Schedule XVIII 38
LISTING OF INSTRUCTIONAL FILING REQUIREMENTS
Page
Description of Reports or Statements Number
ORGANIZATION CHART 39
METHODS OF ALLOCATION 40
ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED 41
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
<PAGE>Page 4
<TABLE>
For the Year Ended December 31, 1999
(In Millions, Rounded to Hundred Thousands of Dollars)
SCHEDULE I
COMPARATIVE BALANCE SHEET
Give balance sheet of Company as of December 31 of the current and prior year
<CAPTION>
Account Assets and Other Debits As of December 31
Current Prior
<S> <C> <C> <C>
SERVICE COMPANY PROPERTY
101 Service company property (Schedule II) $ 0 $ 1.8
107 Construction work in progress (Schedule II)
------ ------
Total Property $ 0 $ 1.8
------ ------
108 Less accumulated provision for depreciation
and amortization of service
company property (Schedule III)
------ ------
Net Service Company Property 0 1.8
------ ------
INVESTMENTS
123 Investments in associate companies (Schedule IV)
124 &
128 Other Investments (Schedule IV) 82.7 72.9
------ ------
Total Investments 82.7 72.9
------ ------
CURRENT AND ACCRUED ASSETS
131 Cash
134 Special deposits .1 .1
135 Working funds
136 Temporary cash investments (Schedule IV) 2.7
141 Notes receivable from associate companies
(Money Pool)
143 Accounts receivable .1 .2
144 Accumulated provision of uncollectible accounts
146 Accounts receivable from associate companies
(Schedule V) 23.4 37.6
152 Fuel stock expenses undistributed (Schedule VI)
154 Materials and supplies
163 Stores expense undistributed (Schedule VII)
165 Prepayments 4.3 4.1
174 Miscellaneous current and accrued assets
(Schedule VIII)
------ ------
Total Current and Accrued Assets 27.9 44.7
------ ------
DEFERRED DEBITS
181 Unamortized debt expense
184 Clearing accounts
186 Miscellaneous deferred debits (Schedule IX) 16.2 8.3
188 Research, development, or demonstration
expenditures (Schedule X)
190 Accumulated deferred income taxes 17.3 15.3
------ ------
Total Deferred Debits 33.5 23.6
------ ------
TOTAL ASSETS AND OTHER DEBITS $144.1 $143.0
====== ======
</TABLE>
<PAGE>
Page 5
<TABLE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1999
(In Millions, Rounded to Hundred Thousands of Dollars)
SCHEDULE I
COMPARATIVE BALANCE SHEET
<CAPTION>
Account Liabilities and Proprietary Capital As of December 31
Current Prior
<S> <C> <C> <C>
PROPRIETARY CAPITAL
201 Common stock issued (Schedule XI)
211 Miscellaneous paid-in-capital (Schedule XI) $ 16.4 $ 16.4
215 Appropriated retained earnings (Schedule XI)
216 Unappropriated retained earnings (Schedule XI) 12.6 10.4
------ ------
Total Proprietary Capital 29.0 26.8
------ ------
LONG-TERM DEBT
223 Advances from associate companies (Schedule XII)
224 Other long-term debt (Schedule XII)
225 Unamortized premium on long-term debt
226 Unamortized discount on long-term debt - debit
------ ------
Total Long-Term Debt
------ ------
CURRENT AND ACCRUED LIABILITIES
231 Notes payable
232 Accounts payable 13.3 9.5
233 Notes payable to associate companies
(Schedule XIII) 5.3
234 Accounts payable to associate companies
(Schedule XIII) .7 .5
236 Taxes accrued
237 Interest accrued
238 Dividends declared
241 Tax collections payable .2 .1
242 Miscellaneous current and accrued
liabilities (Schedule XIII) 8.3 8.3
------ ------
Total Current and Accrued Liabilities 27.8 18.4
------ ------
DEFERRED CREDITS
253 Other deferred credits 87.3 97.8
255 Accumulated deferred investment tax credits
------ ------
Total Deferred Credits 87.3 97.8
------ ------
282 ACCUMULATED DEFERRED INCOME TAXES
------ ------
TOTAL LIABILITIES AND PROPRIETARY CAPITAL $144.1 $143.0
====== ======
</TABLE>
<PAGE>Page 6
<TABLE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1999
(In Millions, Rounded to Hundred Thousands of Dollars)
SCHEDULE II
SERVICE COMPANY PROPERTY
<CAPTION>
BALANCE AT RETIREMENTS BALANCE
BEGINNING OR OTHER (1) AT CLOSE
DESCRIPTION OF YEAR ADDITIONS SALES CHANGES OF YEAR
<S> <C> <C> <C> <C> <C>
Account
301 Organization
303 Miscellaneous
Intangible
Plant
304 Land and Land
Rights
305 Structures and
Improvements
306 Leasehold
Improvements
307 Equipment (2) $1.8 ($1.8) $0
308 Office
Furniture and
Equipment
309 Automobiles,
Other Vehicles
and Related
Garage
Equipment
310 Aircraft and
Airport
Equipment
311 Other Service
Company
Property (3)
------ ------ ------ ------ ------
SUB-TOTAL 1.8 (1.8) 0
------ ------ ------ ------ ------
107 Construction
Work in
Progress (4)
------ ------ ------ ------ ------
TOTAL $1.8 ($1.8) $0
====== ====== ====== ====== ======
</TABLE>
<PAGE>Page 7
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1999
(In Millions, Rounded to Hundred Thousands of Dollars)
SCHEDULE II - CONTINUED
(1) PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
None
(2)Subaccounts are required for each class of equipment owned. The service
company shall provide a listing by subaccount of equipment additions during
the year and the balance at the close of the year:
BALANCE
AT CLOSE
SUBACCOUNT DESCRIPTION OTHER CHANGES OF YEAR
Capitalized lease for computer
information system ($1.8)(A) $0
------ ------
TOTAL ($1.8) $0
====== ======
(A) Reflects amortization of capital lease.
(3) DESCRIBE OTHER SERVICE COMPANY PROPERTY:
None
(4) DESCRIBE CONSTRUCTION WORK IN PROGRESS:
None
<PAGE>
Page 8
<TABLE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1999
(In Millions, Rounded to Hundred Thousands of Dollars)
SCHEDULE III
ACCUMULATED PROVISION FOR DEPRECIATION AND
AMORTIZATION OF SERVICE COMPANY PROPERTY
<CAPTION>
ADDITIONS OTHER
BALANCE AT CHARGED CHANGES BALANCE
BEGINNING TO RETIRE- ADD AT CLOSE
DESCRIPTION OF YEAR ACCT 403 MENTS (DEDUCT)(1) OF YEAR
<S> <C> <C> <C> <C> <C>
Account
301 Organization
303 Miscellaneous
Intangible
Plant
304 Land and Land
Rights
305 Structures and
Improvements
306 Leasehold
Improvements
307 Equipment
308 Office
Furniture and
Equipment
309 Automobiles,
Other Vehicles
and Related
Garage
Equipment
310 Aircraft and
Airport
Equipment
311 Other Service
Company
Property
--- --- --- ---- ---
TOTAL
=== === === ==== ===
1) PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
None
</TABLE>
<PAGE>
Page 9
<TABLE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1999
(In Millions, Rounded to Hundred Thousands of Dollars)
SCHEDULE IV
INVESTMENTS
INSTRUCTIONS: Complete the following schedule concerning investments.
Under Account 124 "Other Investments," state each investment separately, with
description, including, the name of issuing company, number of shares or
principal amount, etc.
Under Account 136, "Temporary Cash Investments," list each investment
separately.
<CAPTION>
BALANCE AT BALANCE AT
BEGINNING CLOSE
DESCRIPTION OF YEAR OF YEAR
<S> <C> <C>
ACCOUNT 123 - INVESTMENT IN ASSOCIATE COMPANIES None None
------ ------
TOTAL None None
====== ======
ACCOUNT 124 & 128 - OTHER INVESTMENTS
Supplemental Retirement/Deferred
Compensation Plan Trust Fund $59.1 $67.1
General American Life Insurance Company -
Net Cash Surrender Value 5.5 5.9
Confederation Life Insurance Company -
Net Cash Surrender Value 3.2 3.9
Aurora National Life Insurance Company -
Net Cash Surrender Value 3.5 3.9
Metropolitan Life Insurance Company -
Net Cash Surrender Value 1.7 2.0
Pacific Mutual Life Insurance Company -
Deferred Compensation - Life Insurance
Investments & Net Cash Surrender Value (.1) (.1)
------ ------
TOTAL $72.9 $82.7
====== ======
ACCOUNT 136 - TEMPORARY CASH INVESTMENTS $ 2.7 $ 0
See Note A, Schedule XIV
------ ------
TOTAL $ 2.7 $ 0
====== ======
</TABLE>
<PAGE>
Page 10
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1999
(In Millions, Rounded to Hundred Thousands of Dollars)
SCHEDULE V
ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES
INSTRUCTIONS: Complete the following schedule listing accounts receivable
from each associate company. Where the service company has
provided accommodation or convenience payments for associate
companies, a separate listing of total payments for each
associate company by subaccount should be provided.
BALANCE AT BALANCE AT
BEGINNING CLOSE
OF YEAR OF YEAR
DESCRIPTION
ACCOUNT 146 - ACCOUNTS RECEIVABLE FROM
ASSOCIATE COMPANIES
New England Electric System $ .3
Massachusetts Electric Company 3.8 $ 4.1
New England Hydro-Trans. Electric Co., Inc. .1
New England Hydro-Transmission Corp. .2
New England Power Company 31.6 17.2
Granite State Electric Company .2 .2
The Narragansett Electric Company 1.1 1.7
Wayfinder, Inc. .1 .1
NEES Communications, Inc. .1 .1
AllEnergy Marketing Company, L.L.C. .1
------ ------
TOTAL $37.6 $23.4
====== ======
TOTAL
ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS: PAYMENTS
New England Electric System $ .1 $(1.1)
Nantucket Electric Company .1 .2
Massachusetts Electric Company 3.7 3.5
New England Power Company 2.9 3.1
Yankee Atomic Electric Company .1
Granite State Electric Company .1 .2
The Narragansett Electric Company 1.1 1.9
AllEnergy Marketing Company, L.L.C. .2
------ ------
TOTAL PAYMENTS $ 8.3 $ 7.8
======= ======
<PAGE>Page 11
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1999
(In Millions, Rounded to Hundred Thousands of Dollars)
SCHEDULE VI
FUEL STOCK EXPENSES UNDISTRIBUTED
INSTRUCTIONS: Report the amount of labor and expenses incurred with respect
to fuel stock expenses during the year and indicate amount
attributable to each associate company. Under the section
headed "Summary" listed below give an overall report of the
fuel functions performed by the service company.
DESCRIPTION LABOR EXPENSES TOTAL
ACCOUNT 152 - FUEL STOCK EXPENSES
UNDISTRIBUTED None None None
---- ---- ----
TOTAL None None None
==== ==== ====
SUMMARY:
<PAGE>Page 12
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1999
(In Millions, Rounded to Hundred Thousands of Dollars)
SCHEDULE VII
STORES EXPENSE UNDISTRIBUTED
INSTRUCTIONS: Report the amount of labor and expenses incurred with
respect to stores expense during the year and indicate
amount attributable to each associate company.
DESCRIPTION LABOR EXPENSES TOTAL
ACCOUNT 163 - STORES EXPENSE
UNDISTRIBUTED None None None
---- ---- -----
TOTAL None None None
==== ==== ====
<PAGE>Page 13
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1999
(In Thousands of Dollars)
SCHEDULE VIII
MISCELLANEOUS CURRENT AND ACCRUED ASSETS
INSTRUCTIONS: Provide detail of items in this account. Items less than
$10,000 may be grouped, showing the number of items in each
group.
BALANCE AT BALANCE AT
BEGINNING CLOSE
DESCRIPTION OF YEAR OF YEAR
ACCOUNT 174 - MISCELLANEOUS CURRENT AND
ACCRUED ASSETS None None
---- ----
TOTAL None None
==== ====
<PAGE>
Page 14
<TABLE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1999
(In Thousands)
SCHEDULE IX
MISCELLANEOUS DEFERRED DEBITS
INSTRUCTIONS: Provide detail of items in this account. Items less than
$10,000 may be grouped by class, showing the number of
items in each class.
<CAPTION>
BALANCE AT BALANCE AT
BEGINNING CLOSE
DESCRIPTION OF YEAR OF YEAR
<S> <C> <C>
ACCOUNT 186 - MISCELLANEOUS DEFERRED DEBITS
Unbilled Computer Information Systems Costs $8,190 $15,530
Unbilled Building Leasehold Improvements 50
Unbilled Shared Microwave System Expenses 6 646
Unbilled Heavy Equipment Expenses 135
Unbilled Transportation (68)
------ ------
TOTAL $8,313 $16,176
====== ======
</TABLE>
<PAGE>
Page 15
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1999
(In Millions, Rounded to Hundred Thousands of Dollars)
SCHEDULE X
RESEARCH, DEVELOPMENT OR DEMONSTRATION EXPENDITURES
INSTRUCTIONS: Provide a description of each material research,
development, or demonstration project which incurred
costs by the service corporation during the year.
DESCRIPTION AMOUNT
ACCOUNT 188 - RESEARCH, DEVELOPMENT, OR
DEMONSTRATION EXPENDITURES None
----
TOTAL None
====
<PAGE>Page 16
<TABLE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1999
(Expressed in Millions, Rounded to Hundred Thousands of Dollars,
except per Share Data)
SCHEDULE XI
PROPRIETARY CAPITAL
<CAPTION>
OUTSTANDING
NUMBER OF PAR OR STATED CLOSE OF PERIOD
ACCOUNT SHARES VALUE NO. OF TOTAL
NUMBER CLASS OF STOCK AUTHORIZED PER SHARE SHARES
AMOUNT
<S> <C> <C> <C> <C> <C>
201 COMMON STOCK ISSUED 4,000 $25 3 $75
INSTRUCTIONS:Classify amounts in each account with a brief explanation,
disclosing the general nature of transactions which give rise to the reported
amounts.
DESCRIPTION AMOUNT
ACCOUNT 211 - MISCELLANEOUS PAID-IN CAPITAL
Capital contributions from New England
Electric System, the holding company,
authorized on:
December 21, 1979 (SEC Release Number 35-21354) $ 1.4
December 29, 1995 15.0
ACCOUNT 215 - APPROPRIATED RETAINED EARNINGS None
------
TOTAL $16.4
======
INSTRUCTIONS:Give particulars concerning net income or (loss) during the year,
distinguishing between compensation for the use of capital owed or net loss
remaining from servicing non-associates per the General Instructions of the
Uniform Systems of Accounts. For dividends paid during the year in cash or
otherwise, provide rate percentage, amount of dividend, date declared and date
paid.
BALANCE AT NET INCOME BALANCE AT
BEGINNING OR DIVIDENDS CLOSE
DESCRIPTION OF YEAR (LOSS) PAID OF YEAR
ACCOUNT 216 -UNAPPROPRIATED RETAINED EARNINGS
Retained earnings $ 1.8 $1.8(A) $1.8(C) $ 1.8
Unrealized appreciation(B) 8.6 2.3 10.8
----- ---- ---- -----
TOTAL $10.4 $4.1 $1.8 $12.6
===== ==== ==== =====
(A)Return on equity of 11.25% as authorized by SEC File #70-6353 amendment No.
11 dated August 18, 1995.
(B) Represents unrealized appreciation on marketable securities.
Generally
Accepted Accounting Principles require such amounts be recorded in
the Proprietary Capital without being included in reported net income.
Since the SEC chart of accounts does not provide for such a common
equity account, these amounts have been reflected in retained earnings in
addition to income reported in the income statement.
(C) DATE DATE NO. OF TOTAL
DECLARED PAID SHARES DIVIDEND
2/24/99 4/01/99 3 $1.8
</TABLE>
<PAGE>Page 17
<TABLE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1999
(In Millions, Rounded to Hundred Thousands of Dollars)
SCHEDULE XII
LONG-TERM DEBT
INSTRUCTIONS: Advances from associate companies should be reported separately
for advances on notes, and
advances on open account. Names of associate companies from which
advances were received
shall be shown under the class and series of obligation column. For
Account 224 - Other
long-term debt provide the name of creditor company or organization,
terms of the obligation,
date of maturity, interest rate, and the amount authorized and
outstanding.
<CAPTION>
TERMS OF OBLIG DATE BALANCE AT BALANCE AT
NAME OF CLASS & SERIES OF INTEREST AMOUNT
BEGINNING DEDUCTIONS CLOSE
CREDITOR OF OBLIGATION MATURITY RATE AUTHORIZED OF
YEAR ADDITIONS (1) OF YEAR
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ACCOUNT 223 -
ADVANCES FROM
ASSOCIATE
COMPANIES: None None
ACCOUNT 224 -
OTHER LONG-TERM
DEBT: None None
---- ----
TOTAL None None
==== ====
(1) Give an explanation of deductions:
None
</TABLE>
<PAGE>Page 18
<TABLE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1999
(In Thousands)
SCHEDULE XIII
CURRENT AND ACCRUED LIABILITIES
INSTRUCTIONS: Provide balance of notes and accounts payable to each associate
company. Give description and amount of miscellaneous current and accrued
liabilities. Items less than $10,000 may be grouped, showing the number of
items in each group.
<CAPTION>
BALANCE AT BALANCE AT
BEGINNING CLOSE
DESCRIPTION OF YEAR OF YEAR
<S> <C> <C>
ACCOUNT 233 - NOTES PAYABLE TO ASSOCIATE
COMPANIES
See Note A, Schedule XIV
------- -------
TOTAL
======= =======
ACCOUNT 234 - ACCOUNTS PAYABLE TO ASSOCIATE
COMPANIES
Massachusetts Electric Company $ 455 $ 453
New England Power Company 195
Granite State Electric Company 1 8
The Narragansett Electric Company 11 19
Wayfinder, Inc. - (1)
------- ------
TOTAL $ 467 $ 674
======= ======
ACCOUNT 242 - MISCELLANEOUS CURRENT AND
ACCRUED LIABILITIES
Group Insurance $ 136 $ -
NEES Goals 2,736 2,338
Thrift Plan 881 1,087
Property Under Capital Lease 1,829
Healthcare Costs 56 166
Accrued Payroll and Vacation Costs 2,661 4,672
------- -------
TOTAL $8,299 $8,263
======= =======
</TABLE>
<PAGE>Page 19
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1999
SCHEDULE XIV
NOTES TO FINANCIAL STATEMENTS
INSTRUCTIONS: The space below is provided for important notes regarding
the financial statements or any account thereof. Furnish
particulars as to any significant contingent assets or
liabilities existing at the end of the year. Notes
relating to financial statements shown elsewhere in this
report may be indicated here by reference.
Note A
During 1981, certain subsidiaries of New England Electric System
established a money pool to more effectively utilize cash resources of
subsidiaries and to reduce outside short-term borrowings. The SEC authorized
the establishment of the money pool in Release No. 35-21987. In 1983, the
terms were amended in Release No. 35-22900 to allow New England Electric
System to invest in the money pool. In 1986, the terms were amended in
Release No. 35-24232 to allow New England Energy Incorporated and NEES Energy,
Incorporated to invest in the money pool and New England Electric Transmission
Corporation to invest in and borrow from the money pool. In 1988, the terms
were amended in Release No. 35-24733 to allow New England Hydro-Transmission
Electric Company Incorporated and New England Hydro-Transmission Corporation
to invest in the money pool. In 1992, the terms were amended in Release No.
35-25483 to remove NEES Energy, Incorporated from participation in the money
pool, to allow New England Hydro-Transmission Electric Company and New England
Hydro-Transmission Corporation to borrow from the money pool, to allow New
England Hydro Finance Company, Incorporated and Narragansett Energy Resources
Company to invest in the money pool and to divide the borrowing members of the
money pool into Group I and Group II, consisting of wholly owned subsidiaries
and non-wholly owned subsidiaries, respectively, with different borrowing
priorities. In 1995, the terms were amended in Release No. 35-26439 to allow
Nantucket Electric Company to invest in and borrow from the money pool.
Short-term borrowing needs of subsidiaries are met first with available
funds of other subsidiaries. Borrowing companies pay interest at a rate
designed to approximate the cost of outside short-term borrowings. Companies
who invest in the pool share the interest earned on a basis proportionate to
their average monthly investment in the money pool. Funds may be withdrawn
from or repaid to the pool at any time without prior notice.
New England Power Service Company was designated to administer the pool
as agent for the member companies. The Company has classified pool
transactions of the member companies on a net basis in the current and prior
year balance sheets.
At December 31, 1999 the detail of this pool was as follows (in
thousands):
Investments in the Pool:
New England Hydro-Trans. Electric Co., Inc. $ 2,625
New England Power Company 204,325
New England Energy Incorporated 9,800
Granite State Electric Company 5,775
New England Hydro-Transmission Corp 775 $223,300
-------- ========
Borrowings from the Pool:
New England Power Service Company 5,325
Nantucket Electric Company 2,300
Massachusetts Electric Company 43,000
The Narragansett Electric Company 9,725
New England Electric Transmission Corp. 4,150
--------
$ 64,500
Investments outside the Pool $158,800 $223,300
-------- ========
<PAGE>Page 20
<TABLE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1999
(In Millions, Rounded to Hundred Thousands of Dollars)
SCHEDULE XV
STATEMENT OF INCOME
<CAPTION>
ACCOUNT DESCRIPTION CURRENT PRIOR
YEAR YEAR
<S> <C> <C> <C>
INCOME
457 Services rendered to associate companies $206.7 $209.4
458 Services rendered to nonassociate companies .2 .7
421 Miscellaneous income or loss
------ ------
TOTAL INCOME $206.9 $210.1
------ ------
EXPENSE
920 Salaries and wages 90.4 90.5
921 Office supplies and expenses 41.9 40.3
922 Administrative expense transferred - credit
923 Outside services employed 28.6 26.8
924 Property insurance .1
925 Injuries and damages 1.3 1.5
926 Employee pensions and benefits 20.4 23.4
928 Regulatory commission expense .1 .1
930.1 General advertising expenses
930.2 Miscellaneous general expenses .9 .6
931 Rents 12.8 15.8
932 Maintenance of structures and equipment 1.8 1.8
403 Depreciation and amortization expense
408 Taxes other than income taxes 5.7 7.0
409 Income taxes 3.7 4.7
410 Provision for deferred income taxes 5.0
411 Provision for deferred income taxes - credit (8.2) (4.9)
411.5 Investment tax credit
419 Interest income (2.3) (2.0)
426.1 Donations .3 .3
426.5 Other deductions
427 Interest on long-term debt
430 Interest on debt to associate companies .2 .1
431 Other interest expense 2.5 2.2
------ ------
TOTAL EXPENSE $205.1 $208.3
------ ------
NET INCOME OR (LOSS) $ 1.8 $ 1.8
====== =======
</TABLE>
<PAGE>Page 21
<TABLE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1999
(In Millions, Rounded to Hundred Thousands of Dollars)
ANALYSIS OF BILLING
ASSOCIATE COMPANIES
ACCOUNT 457
<CAPTION>
DIRECT INDIRECT COMPENSATION TOTAL
COSTS COSTS FOR USE AMOUNT
NAME OF ASSOCIATE COMPANY CHARGED CHARGED OF CAPITAL BILLED
457-1 457-2 457-3
<S> <C> <C> <C> <C>
New England Electric System 9.1 1.5 0.1 10.7
Nantucket Electric Company 1.2 0.2 1.4
Massachusetts Electric Company 89.2 13.3 .8 103.3
New England Hydro-Transmission
Electric Co., Inc. 2.2 0.8 3.0
New England Hydro-Transmission Corp. 0.7 0.1 0.8
New England Power Company 31.0 12.0 0.5 43.5
New England Electric Transmission
Corp. 0.5 0.2 0.7
Granite State Electric Company 3.8 0.6 4.4
The Narragansett Electric Company 28.1 4.2 0.3 32.6
New England Energy Incorporated 0.1 0.1
Wayfinder, Inc. 1.3 0.3 1.6
NEES Communications, Inc. 2.2 1.0 0.1 3.3
NEES Energy, Inc. 0.1 0.1
AllEnergy Marketing Company, L.L.C. 0.9 0.3 1.2
------ ----- ---- ------
TOTAL 170.4 34.5 1.8 206.7
====== ===== ==== ======
</TABLE>
<PAGE>Page 22
<TABLE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1999
(In Millions, Rounded to Hundred Thousands of Dollars)
ANALYSIS OF BILLING
NONASSOCIATE COMPANIES
ACCOUNT 458
<CAPTION>
DIRECT INDIRECT COMPENSATION EXCESS TOTAL
COST COST FOR USE TOTAL OR AMOUNT
NAME OF NONASSOCIATE COMPANY CHARGED CHARGED OF CAPITAL
COST DEFICIENCY BILLED
458-1 458-2 458-3 458-4
<S> <C> <C> <C> <C> <C> <C>
1) MediaOne $.1 - - $.1 - $.1
2) Other .1 - - .1 .1
----- ---- --- ----- --- -----
TOTAL $.2 - - $.2 $ - $.2
===== ==== === ===== === =====
INSTRUCTION: Provide a brief description of the services rendered to each
nonassociated company:
1) Dielectric Testing of Rubber Goods
2) Billing related to use of NEES Training Center, Dielectric Testing of
Rubber Goods and other miscellaneous
services.
</TABLE>
<PAGE>Page 23
<TABLE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1999
(In Millions, Rounded to Hundred Thousands of Dollars)
SCHEDULE XVI
ANALYSIS OF CHARGES FOR SERVICE ASSOCIATE AND NONASSOCIATE COMPANIES
<CAPTION> ASSOCIATE COMPANY CHARGES NONASSOCIATE COMPANY CHARGES
TOTAL CHARGES FOR SERVICE
------------------------- ----------------------------
- -------------------------
DIRECT INDIRECT DIRECT INDIRECT DIRECT
INDIRECT
COST COST TOTAL COST COST TOTAL COST
COST TOTAL
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
920 Salaries and Wages $79.6 $10.7 $90.3 0.1
0.1 $79.7 $10.7 $90.4
921 Office Supplies and Expenses 31.1 10.7 41.8
0.1 0.1 31.2 10.7 41.9
922 Administrative Expense
Transferred-Credit
923 Outside Services Employed 27.1 1.5 28.6
27.1 1.5 28.6
924 Property Insurance
925 Injuries and Damages 1.1 0.2 1.3
1.1 0.2 1.3
926 Employee Pensions and Benefits 17.7 2.7
20.4 17.7 2.7 20.4
928 Regulatory Commission Expense 0.1 0.1
0.1 0.1
930.1 General Advertising Expenses
930.2 Miscellaneous General Expenses 0.8 0.1
0.9 0.8 0.1 0.9
931 Rents 5.9 6.9 12.8 5.9 6.9 12.8
932 Maintenance of Structures and
Equipment 0.2 1.6 1.8 0.2 1.6
1.8
403 Depreciation and Amortization
Expense
408 Taxes Other Than Income Taxes 4.9 0.8
5.7 4.9 0.8 5.7
409 Income Taxes 3.7 3.7 3.7 3.7
410 Provision for Deferred Income
Taxes 5.0 5.0 5.0 5.0
411 Provision for Deferred Income
Taxes-Credit (8.2) (8.2) (8.2)
(8.2)
411.5 Investment Tax Credit
419 Interest Income (2.3) (2.3)
(2.3) (2.3)
426.1 Donations 0.3 0.3 0.3 0.3
426.5 Other Deductions
427 Interest on Long-Term Debt
431 Other Interest Expense 1.9 0.6 2.5
1.9 0.6 2.5
-------- ------- -------- ------ ---
- ------ -------- ------- --------
TOTAL EXPENSES $170.4 $34.3 $204.7 $0.2 $0.0
$0.2 $170.6 $34.3 $204.9
======== ======= ======== ====== ===
====== ======== ======= ========
Compensation for use of
Equity Capital 1.8 1.8
------- ------ -------
430 Interest on Debt to
Associate Companies 0.2 0.2
-------- ------ --------
TOTAL COST OF SERVICE $206.7
$0.2 $206.9
======== ====== ========
INSTRUCTION:Total cost of service will equal for associate and
nonassociate companies the total amount billed under
their separate analysis of billing schedules.
</TABLE>
<PAGE>
Page 24
<TABLE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1999
(In Millions, Rounded to Hundred Thousands of Dollars)
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION BY DEPARTMENT OR SERVICE FUNCTION
<CAPTION>
TOTAL
DESCRIPTION OF ITEMS AMOUNT OVERHEAD 01 02 03 04
------ -------- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
920 Salaries and wages $90.4 $6.7 $3.3 $6.0 $2.4
921 Office supplies and expenses 41.9 2.2 2.9 2.2
0.1
922 Administrative expense transferred - credit
923 Outside services employed 28.6 5.8 0.2 0.4
924 Property insurance
925 Injuries and damages 1.3
926 Employee pensions and benefits 20.4 0.2
928 Regulatory commission expense 0.1
930.1 General advertising expenses
930.2 Miscellaneous general expense 0.9
931 Rents 12.8 0.4 0.9
932 Maintenance of structures and equipment 1.8
403 Depreciation and amortization expense
408 Taxes other than income taxes 5.7 0.2 0.3 0.5
0.2
409 Income taxes 3.7 3.7
410 Provision for deferred income taxes 5.0 5.0
411 Provision for deferred income taxes - credit (8.2) (8.2)
411.5 Investment tax credit
419 Interest income (2.3)
426.1 Donations 0.3
426.5 Other deductions
427 Interest on long-term debt
430 Interest on debt to associate companies 0.2
431 Other interest expense 2.5
------ ---- ---- ---- ---- -----
TOTAL EXPENSES $205.1 $0.5 $15.1 $7.1 $10.0
$2.7
====== ==== ==== ==== ==== =====
INSTRUCTION:Indicate each department or service function. (see Instruction
01-3 General Structure of Accounting System: Uniform System of Accounts)
</TABLE>
<PAGE>Page 25
<TABLE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1999
(In Millions, Rounded to Hundred Thousands of Dollars)
SCHEDULE XVII - CONTINUED
<CAPTION>
ACCOUNT
NUMBER 05 06 07 08 09 10 11 12 13
14 15
- ------- ------- ------- ------- ------- -------
- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
<C> <C> <C>
920 1.5 5.2 11.7 3.3 0.7 0.6 18.4 2.1
0.4 7.4 0.6
921 1.4 17.4 2.5 0.1 2.4 1.0
1.4 0.1
922
923 1.7 15.9 0.8 0.2 0.1 0.1 0.5
924
925 0.6 0.6
926 19.7 0.1 0.1 0.1
928
930.1
930.2 0.5 0.2
931 2.3 4.5 0.3 0.6
932 1.5
403
408 0.1 0.3 0.8 0.2 0.1 1.4 0.1 0.3
409
410
411
411.5
419 (2.3)
426.1 0.2 0.1
426.5
427
430 0.2
431 0.4 2.1
---- ---- ----- ----- ---- ---- ----
- ----- ---- --- -----
$1.6 $31.5 $50.4 $7.1 $0.9 $0.9 $22.9
$4.1 $0.5 $12.0 $0.7
==== ==== ===== ===== ==== ==== ====
===== ==== === =====
</TABLE>
<PAGE>Page 26
<TABLE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1999
(In Millions, Rounded to Hundred Thousands of Dollars)
SCHEDULE XVII - CONTINUED
<CAPTION>
ACCOUNT
NUMBER 16 17 18 19
- ------- ------- ------- ------- ------- -------
- ------- ------- ------- ------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
<C> <C>
920 11.5 5.5 0.7 2.4
921 5.9 0.9 1.2 0.2
922
923 1.7 0.8 0.4
924
925 0.1
926 0.2
928 0.1
930.1
930.2 0.2
931 3.8
932 0.3
403
408 0.9 0.2 0.1
409
410
411
411.5
426.1
426.5
427
430
431
----- ----- ---- ---- ---- ---- ---- ----
- ---- ----
$24.2 $7.5 $2.7 $2.7
===== ===== ==== ==== ==== ==== ====
==== ==== ====
</TABLE>
<PAGE>Page 27
<TABLE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1999
(In Millions, Rounded to Hundred Thousands of Dollars)
DEPARTMENTAL ANALYSIS OF SALARIES
ACCOUNT 920
<CAPTION>
DEPARTMENTAL SALARY EXPENSE
NAME OF DEPARTMENT INCLUDED IN AMOUNTS BILLED TO NUMBER
------------------------------- PERSONNEL
Indicate each dept. or TOTAL PARENT OTHER NON END OF
service function AMOUNT COMPANY ASSOCIATES ASSOCIATES YEAR
<S> <C> <C> <C> <C> <C>
01 Management $ 6.7 $1.5 $ 5.2 $- 14
02 Customer Service 3.3 - 3.3 - 49
03 Engineering 6.0 - 6.0 - 75
04 Supply Chain
Management 2.4 - 2.4 - 35
05 Transmission 1.5 - 1.5 - 21
06 Human Resources 5.2 .7 4.5 - 38
07 Information Services 11.7 - 11.7 - 159
08 Demand Side Management 3.3 - 3.3 - 40
09 Rates .7 - .7 - 6
10 Environmental .6 - .6 - 6
11 Construction 18.4 - 18.4 - 285
12 Treasury/Financial 2.1 .5 1.6 - 20
13 Financial Forecasting .4 - .4 - 5
14 Corporate Accounting 7.4 .1 7.3 - 69
15 Internal Audit .6 - .6 - 9
16 Retail Operations 11.5 - 11.5 - 158
17 Corporate Legal 5.5 .5 5.0 - 30
18 Corporate
Communications .7 - .7 - 9
19 New Business
Development 2.4 - 2.4 - 18
------ ------ ------ ------ ------
TOTAL $90.4 $3.3 $87.1 - 1046
====== ====== ====== ====== ======
</TABLE>
<PAGE>Page 28
<TABLE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1999
(In Millions)
OUTSIDE SERVICES EMPLOYED
ACCOUNT 923
INSTRUCTIONS: Provide a breakdown by subaccount of outside services
employed. If the aggregate amounts paid to any one payee
and included within one subaccount is less than $100,000,
only the aggregate number and amount of all such payments
included within the subaccount need be shown. Provide a
subtotal for each type of service.
<CAPTION>
RELATIONSHIP
"A"- ASSOCIATE
FROM WHOM PURCHASED TYPE OF SERVICE "NA"- NON ASSOCIATE AMOUNT
<S> <C> <C> <C>
LEGAL SERVICES
Hale & Dorr Legal Services NA $0.1
Halloran & SageLegal Services NA 0.2
Eighteen Vendors NA 0.5
(Each Under $100,000) ----
TOTAL LEGAL SERVICES 0.8
----
ENGINEERING SERVICES
Haley & Aldrich Environmental Engineering
Services NA 0.2
Clarence J. Sasso Engineering Services NA 0.2
Thirteen Vendors NA 0.1
(Each Under $100,000) ----
TOTAL ENGINEERING SERVICESS 0.5
----
MANAGEMENT CONSULTING SERVICES
Higher Ground Associates Management Consultants NA 0.1
Hewitt Associates Management Consultants NA 0.5
Mercer Management Management Consultants NA 2.6
Eight Vendors NA 0.3
(Each Under $100,000) -----
TOTAL MANAGEMENT CONSULTING SERVICES 3.5
-----
ACCOUNTING SERVICES
Pricewaterhouse CoopersAccounting ConsultantsNA 0.1
-----
TOTAL ACCOUNTING SERVICES 0.1
-----
</TABLE>
<PAGE>
Page 29
<TABLE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1999
(In Millions)
OUTSIDE SERVICES EMPLOYED - CONTINUED
ACCOUNT 923
<CAPTION>
RELATIONSHIP
"A"- ASSOCIATE
FROM WHOM PURCHASED TYPE OF SERVICE "NA"- NON ASSOCIATE AMOUNT
<S> <C> <C> <C>
OTHER SERVICES
Advance Information Systems
Professional Services NA 0.1
Agnew Carter McCarthy, Inc Human Resources Management
Services NA 0.3
Alpine Computer Systems,Information Systems
Inc. Professional Services NA 0.5
American Consulting Group Human Resources Management
Services NA 0.2
Apex Consulting Information Systems
Professional Services NA 0.3
Applied MarketingDemand Side Management
ConsultingNA 0.4
Choate, Hall & StewartLegislative ConsultingNA 0.1
Command Systems Information Systems
Professional Services NA 0.2
Computer Associates Information Systems
Professional Services NA 0.2
EDP Contract Services Information Systems
Professional Services NA 0.4
Eliassen Group, Inc. Information Systems
Professional Services NA 0.2
IBM Information Systems
Professional Services NA 5.9
Keane, Associates Information Systems
Professional Services NA 5.4
Lighthouse Computer Information Systems
Services Professional Services NA 0.1
Maxima Consulting, Inc. Information Systems
Professional Services NA 0.3
Merrill LynchInvestment Banking ServicesNA 2.9
Micro Tech ConsultantsInformation Systems
Professional ServicesNA 0.1
</TABLE>
<PAGE>
Page 30
<TABLE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1999
(In Millions)
OUTSIDE SERVICES EMPLOYED - CONTINUED
ACCOUNT 923
<CAPTION>
RELATIONSHIP
"A"- ASSOCIATE
FROM WHOM PURCHASED TYPE OF SERVICE "NA"- NON ASSOCIATE AMOUNT
<S> <C> <C> <C>
MODIS Information Systems
Professional Services NA 0.1
Navigant ConsultingDemand Side Management
ConsultingNA 0.2
New Boston Systems Information Systems
Professional Services NA 1.3
Palmer & AssociatesInformation Systems
Professional ServicesNA 0.1
Plangraphics, Inc Information Systems
Professional Services NA 0.2
Reliance Systems Information Systems
Professional Services NA 0.7
Regional Economic
Research, Inc.Professional ServicesNA 0.2
Sullivan & Cogliano Information Systems
Professional Services NA 0.2
Systems & Management Information Systems
Consulting Professional Services NA 0.2
Towers, Perrin Human Resources
Forster & Crosby Management Services NA 0.2
Waterfield Technology GroupInformation Systems
Professional ServicesNA 0.5
WorkscapeHuman Resources Management
ServicesNA 0.2
Seventy-Five vendors Miscellaneous Services NA 2.0
(each under $100,000) ------
TOTAL OTHER SERVICES 23.7
------
GRAND TOTAL 28.6
======
</TABLE>
<PAGE>Page 31
<TABLE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1999
(In Thousands)
EMPLOYEE PENSIONS AND BENEFITS
ACCOUNT 926
<CAPTION>
INSTRUCTIONS: Provide a listing of each pension plan and benefit
program provided by the service company. Such listing
should be limited to $25,000.
DESCRIPTION AMOUNT
<S> <C> <C>
Pensions $ 8,455
Postretirement Benefits Other than Pensions 5,231
Postemployment Benefits (441)
Group Insurance Premiums 775
Executive Life Insurance (1,444)
Medical Insurance Premiums 3,791
Employee Publications 101
Employee Health Program 372
Employee Educational Aid 274
Employee Thrift Plan 2,191
Employee Termination Costs 211
Employee Occupational Health Service 109
Employee Awards 97
Employee Benefits Administration 548
Miscellaneous (Each Under $25,000) 98
-------
TOTAL $20,368
=======
</TABLE>
<PAGE>Page 32
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1999
(In Thousands)
GENERAL ADVERTISING EXPENSES
ACCOUNT 930.1
INSTRUCTIONS: Provide a listing of the amount included in Account
930.1, "General Advertising Expenses", classifying the
items according to the nature of the advertising and
as defined in the account definition. If a particular
class includes an amount in excess of $3,000 applicable
to a single payee, show separately the name of the payee
and the aggregate amount applicable thereto.
DESCRIPTION NAME OF PAYEE AMOUNT
None
----
TOTAL None
====
<PAGE>Page 33
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1999
(In Thousands)
MISCELLANEOUS GENERAL EXPENSES
ACCOUNT 930.2
INSTRUCTIONS: Provide a listing of the amount included in Account
930.2, "Miscellaneous General Expenses", classifying such
expenses according to their nature. Payments and expenses
permitted by Sections 321(b) (2) of the Federal Election
Campaign Act, as amended by Public Law 94-283 in 1976 (2 U.S.C.
Section 441 (b) (2)) shall be separately classified.
DESCRIPTION AMOUNT
Annual Report Costs $171
Annual Meeting Costs 102
Membership Dues - Company 605
----
TOTAL $878
====
<PAGE>Page 34
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1999
(In Millions, Rounded to Hundred Thousands of Dollars)
RENTS
ACCOUNT 931
INSTRUCTIONS: Provide a listing of the amount included in Account
931, "Rents", classifying such expenses by major
groupings of property, as defined in the account
definition of the Uniform System of Accounts.
TYPE OF PROPERTY AMOUNT
Building Rents $ 4.4
Microwave and Telemetering Equipment 1.3
Computer Hardware and Software 2.4
Transportation Equipment 1.3
Capital Lease - Computer Information Systems 1.9
Office and Other Equipment 1.5
-----
TOTAL $12.8
=====
<PAGE>Page 35
<TABLE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1999
(In Millions, Rounded to Hundred Thousands of Dollars)
TAXES OTHER THAN INCOME TAXES
ACCOUNT 408
INSTRUCTIONS: Provide an analysis of Account 408, "Taxes Other Than
Income Taxes". Separate the analysis into two groups:
(1) other than U.S. Government taxes, and (2) U.S.
Government taxes. Specify each of the various kinds
of taxes and show the amounts thereof. Provide a subtotal
for each class of tax.
<CAPTION>
KIND OF TAX AMOUNT
<S> <C> <C>
1) OTHER THAN U.S. GOVERNMENT TAXES
State Unemployment $ .4
------
SUBTOTAL $ .4
------
2) U.S. GOVERNMENT TAXES
Federal Unemployment $ .1
Federal Insurance Contribution Act - Company 5.2
------
SUBTOTAL $5.3
------
TOTAL $5.7
======
</TABLE>
<PAGE>Page 36
<TABLE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1999
(In Millions, Rounded to Hundred Thousands of Dollars)
DONATIONS
ACCOUNT 426.1
INSTRUCTIONS:Provide a listing of the amount included in Account 426.1,
"Donations", classifying such expenses by its purpose. The aggregate number
and amount of all items of less than $3,000 may be shown in lieu of details.
<CAPTION>
NAME OF RECIPIENT PURPOSE OF DONATION AMOUNT
<S> <C> <C>
United Way Matching Gifts Program $106
W.G.B.H. Matching Gifts Program 8
Dana-Farber Cancer Institute Matching Gifts Program 6
Greater Worcester Community
FoundationMatching Gifts Program 6
American Cancer Society Matching Gifts Program 5
American Textile History MuseumMatching Gifts Program 5
Boston Ballet CompanyMatching Gifts Program 5
Massachusetts Institute
of Technology Matching Gifts Program 5
Northeastern UniversityMatching Gifts Program 5
St. John's Seminary Matching Gifts Program 5
American Red CrossMatching Gifts Program 4
Town of Westborough Matching Gifts Program 4
Vermont Historical SocietyMatching Gifts Program 4
West Point Fund/AssocMatching Gifts Program 4
Belmont Hill School Matching Gifts Program 3
Clark UniversityMatching Gifts Program 3
College of the Holy CrossMatching Gifts Program 3
Harpsichord Unlimited Matching Gifts Program 3
Merrimack College Matching Gifts Program 3
Saint Mary's High SchoolMatching Gifts Program 3
YMCA of Greater Worcester Matching Gifts Program 3
Miscellaneous (542 Items) Matching Gifts Program for
(Each Vendor Under $3,000) educational institutions and
other charitable organizations 133
-----
TOTAL 326
=====
</TABLE>
<PAGE>Page 37
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1999
(In Millions, Rounded to Hundred Thousands of Dollars)
OTHER DEDUCTIONS
ACCOUNT 426.5
INSTRUCTIONS: Provide a listing of the amount included in Account
426.5, "Other Deductions", classifying such expenses
according to their nature.
DESCRIPTION NAME OF PAYEE AMOUNT
None
----
TOTAL None
====
<PAGE>Page 38
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1999
SCHEDULE XVIII
NOTES TO STATEMENT OF INCOME
INSTRUCTIONS: The space below is provided for important notes
regarding the statement of income or any account thereof.
Furnish particulars as to any significant increase in
services rendered or expenses incurred during the year.
Notes relating to financial statements shown elsewhere in
this report may be indicated here by reference.
No Significant Notes
<PAGE>Page 39
<TABLE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
ORGANIZATION CHART
For the Year Ended December 31, 1999
<CAPTION>Chairman NEES
(01)
!
!
President & Chief Executive
Officer NEES
(01)
!
!
- --------------------------------------------------------------------------------
- ---------------------------------------
<S> <C> <C> <C> <C> <C> <C>
! ! ! ! ! !
President & Vice President Sr.Vice President Sr.Vice
President Treasurer President
CEO of NEES NEES NEES NEES NEPCo
Distribution ! ! ! ! !
Subsidiaries ! ! ! ! !
(01) (01) (14) (01) (12) (01)
! ! ! ! ! !
! ! ! ! ! !
Customer Service Supply Chain Environmental Rates New
Business Transmission
(02) Management (10) (09) Development (05)
! (04) ! ! (19)
! ! ! !
Engineering Human Resources Corporate Legal
Treasury/Financial
(03) (06) (17) (12)
! ! ! !
! ! ! !
Demand Side Information Corporate Financial Forecasting
Management Services Communications (13)
(08) (07) (18) !
! !
Environmental Corporate Accounting
(10) (14)
! !
Construction Internal Audit
(11) (15)
!
Retail Operations
(16)
</TABLE>
The numbers that appear with Department are a cross reference to Page 27.
<PAGE>Page 40
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1999
METHODS OF ALLOCATION
Inventory, less fuel
Microwave air line circuit miles
Number of employees
Number of customers
Number of meters in service
Transmission and distribution operation and maintenance expenses
(excluding transmission of electricity by others), customers accounts,
customer service and information, and sales expenses.
Number of purchase orders
Archive space occupied
Budgeted transmission/distribution
operation and maintenance expenditures
Budgeted transmission/distribution
capital expenditures
Number of aerial devices
Average of number of purchase orders issued,
number of checks processed and inventory balances
Total billings to associated companies for services rendered (excluding
convenience payments)
Materials and supplies issues
<PAGE>Page 41
<TABLE>
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1999
(In Millions, Rounded to Hundred Thousands of Dollars)
ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED
As authorized by Commission's File No. 70-6353 and amendment No. 11 dated
August 18, 1995, New England Power Service Company included in its service
charge to customers for the year 1999 the amount of $1.8 million dollars. The
following is a schedule indicating a breakdown of this billing:
<CAPTION>
Associated Non-Associated
Companies Companies Total
------------ ---------------- ---------
<S> <C> <C> <C>
Total Compensation $1.8 - $1.8
Excess of Revenues Billed
Over Costs Incurred to
Non-Associated Companies - - -
---- --- ----
Compensation for Use of $1.8 - $1.8
Equity Capital Billed
==== === ====
The Company is authorized by this order and amendment thereto to use a
rate of return on Common Equity of New England Power Company as authorized in
FERC proceedings. The calculation of the authorized amount is as follows:
Common Equity:
Capital Contributions from NEES $16.4
Common Shares
-----
$16.4
-----
Amount of Equity return
January - December @ 11.25% $1.8
=====
</TABLE>
<PAGE>Page 42
ANNUAL REPORT OF NEW ENGLAND POWER SERVICE COMPANY
For the Year Ended December 31, 1999
SIGNATURE CLAUSE
Pursuant to the requirements of the Public Utility Holding Company Act of
1935 and the rules and regulations of the Securities and Exchange Commission
issued thereunder, the undersigned company has duly caused this report to be
signed on its behalf by the undersigned officer thereunto duly authorized.
New England Power Service Company
- ---------------------------------
(Name of Reporting Company)
By: s/ Kwong O. Nuey, Jr.
-------------------------------
(Signature of Signing Officer)
K. O. Nuey, Jr. Vice President and Controller
- -------------------------------------------
(Printed Name and Title of Signing Officer)
<PAGE>
EXHIBIT INDEX
Exhibit No. Description Page
----------- ----------- ----
27 Financial Data Schedule Filed herewith
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<PAGE>
<ARTICLE> OPUR2
<LEGEND>THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
THE BALANCE SHEET AND RELATED STATEMENTS OF INCOME, RETAINED EARNINGS AND CASH
FLOWS OF NEW ENGLAND POWER SERVICE COMPANY, AND IS QUALIFIED IN ITS ENTIRETY
BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<MULTIPLIER> 1,000,000
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> DEC-31-1999
<BOOK-VALUE> PER-BOOK
<NET-SERVICE-COMPANY-PROPERTY> 0
<TOTAL-INVESTMENTS> 82.7
<TOTAL-CURRENT-ASSETS> 27.9
<TOTAL-DEFERRED-DEBITS> 33.5
<OTHER-ASSETS-AND-DEBITS> 0
<TOTAL-ASSETS-AND-DEBITS> 144.1
<TOTAL-PROPRIETARY-CAPITAL> 29.0
<TOTAL-LONG-TERM-DEBT> 0
<NOTES-PAYABLE> 0
<NOTES-PAYABLE-ASSOCIATE-COMP> 5.3
<OTHER-CURR-AND-ACCRUED-LIAB> 22.5
<TOTAL-DEFERRED-CREDITS> 87.3
<DEFERRED-INCOME-TAX> 0
<TOT-LIABIL-AND-PROPRIET-CAP> 144.1
<SERVICES-ASSOCIATE-COMPANIES> 206.7
<SERVICES-NON-ASSOCIATE-COMP> .2
<MISC-INCOME-OR-LOSS> 0
<TOTAL-INCOME> 206.9
<SALARIES-AND-WAGES> 90.4
<EMPLOYEE-PENSION-AND-BENEFIT> 20.4
<OTHER-EXPENSES> 94.3
<TOTAL-EXPENSES> 205.1
<NET-INCOME> 1.8
<TOTAL-EXPENSES-DIRECT-COST> 170.6
<TOTAL-EXPENSES-INDIRECT-COST> 34.3
<TOT-EXP-DIRECT-AND-INDIRECT> 204.9
<PERSONNEL-END-OF-YEAR> 1,046.0
