<PAGE>NATIONAL GRID USA AND SUBSIDIARIES
Statement of Consolidated Income
Twelve Months Ended March 31, 2000
(Unaudited)
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(In Thousands)
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Operating revenue $ 2,709,560
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Operating expenses:
Fuel for generation 13,293
Purchased electric energy:
Contract termination charges and
nuclear unit shutdown costs 188,309
Other 807,357
Cost of sales, AllEnergy 475,716
Other operation 516,174
Maintenance 81,570
Depreciation and amortization 205,171
Taxes, other than income taxes 101,488
Income taxes 93,723
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Total operating expenses 2,482,801
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Operating income 226,759
Other income:
Allowance for equity funds used during construction 1,002
Equity in income of generating companies 3,286
Other income (expense), net 2,747
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Operating and other income 233,794
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Interest:
Interest on long-term debt 69,875
Other interest 14,356
Allowance for borrowed funds used during construction (1,487)
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Total interest 82,744
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Income after interest 151,050
Preferred dividends and net gain/loss on reacquisition
of preferred stock 1,090
Minority interests 5,656
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Net income $ 144,304
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Net income from continuing operations
less applicable income taxes of $98,667 $ 152,055
Net loss from discontinued operations of AllEnergy
less applicable income tax benefit of ($4,944) (7,751)
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Net income $ 144,304
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Statement of Consolidated Retained Earnings
Retained earnings at beginning of period $ 1,008,128
Net income 144,304
Dividends declared on common shares (143,739)
Purchase accounting fair value adjustment (1,006,522)
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Retained earnings at end of period $ 2,171
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