<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(MARK ONE)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM TO
COMMISSION FILE NUMBER 33-87902
33-87902-01
33-87902-02
IEC FUNDING CORP.
NORTH JERSEY ENERGY ASSOCIATES, A LIMITED PARTNERSHIP
NORTHEAST ENERGY ASSOCIATES, A LIMITED PARTNERSHIP
-----------------------------------------------------
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
DELAWARE 04-3255377
NEW JERSEY 04-2955646
MASSACHUSETTS 04-2955642
-------------- ----------
(STATE OR OTHER JURISDICTION OF (I.R.S. EMPLOYER
INCORPORATION OR ORGANIZATION) IDENTIFICATION NO.)
350 LINCOLN PLACE, HINGHAM, MASSACHUSETTS 02043
- ------------------------------------------------ ----------
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
(781) 749-9800
--------------
(REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)
INDICATE BY CHECK MARK WHETHER THE REGISTRANT (1) HAS FILED ALL REPORTS
REQUIRED TO BE FILED BY SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF
1934 DURING THE PRECEDING 12 MONTHS (OR FOR SUCH SHORTER PERIOD THAT THE
REGISTRANT WAS REQUIRED TO FILE SUCH REPORTS), AND (2) HAS BEEN SUBJECT TO SUCH
FILING REQUIREMENTS FOR THE PAST 90 DAYS.
YES X NO
---- -----
<PAGE>
IEC FUNDING CORP.
NORTHEAST ENERGY ASSOCIATES, A LIMITED PARTNERSHIP
NORTH JERSEY ENERGY ASSOCIATES, A LIMITED PARTNERSHIP
INDEX
PAGE NUMBER
PART I FINANCIAL INFORMATION
Item 1. Financial Statements
NORTHEAST ENERGY ASSOCIATES AND
NORTH JERSEY ENERGY ASSOCIATES
Combined Balance Sheet at December 31, 1996 and
September 30, 1997 (Unaudited).................................. 3
Combined Statement of Operations for the Three
Months and Nine Months Ended September 30, 1996 and 1997
(Unaudited)..................................................... 4
Combined Statement of Cash Flows for the
Nine Months Ended September 30, 1996 and 1997 (Unaudited)...... 5
Notes to Combined Financial Statements.......................... 7
IEC FUNDING CORP.
Balance Sheet at December 31, 1996 and
September 30, 1997 (Unaudited).................................. 8
Statement of Operations for the Three Months and Nine Months
Ended September 30, 1996 and 1997 (Unaudited)................... 9
Statement of Cash Flows for the Nine Months
Ended September 30, 1996 and 1997 (Unaudited)................... 10
Notes to Financial Statements................................... 11
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations................... 12
PART II OTHER INFORMATION................................................. 14
SIGNATURES................................................................. 15
<PAGE>
NORTHEAST ENERGY ASSOCIATES, A LIMITED PARTNERSHIP AND
NORTH JERSEY ENERGY ASSOCIATES, A LIMITED PARTNERSHIP
COMBINED BALANCE SHEET (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DECEMBER 31, SEPTEMBER 30,
1996 1997
(IN THOUSANDS)
<S> <C> <C>
ASSETS
Current assets
Cash and cash equivalents $ 49,861 $ 75,144
Accounts receivable 43,671 55,024
Fuel inventories 5,410 6,186
Prepaid expenses and other current assets 2,566 1,972
--------- ---------
Total current assets 101,508 138,326
--------- ---------
Cogeneration facilities and carbon dioxide facility (net of
accumulated depreciation of $129,068,000 and $147,754,000
at December 31, 1996 and September 30, 1997 respectively) 373,781 355,553
Other fixed assets (net of accumulated depreciation of $438,000
and $509,000 at December 1996 and September 30, 1997
(respectively) 304 277
Unamortized financing costs 17,837 16,196
Other assets 3,806 4,277
Restricted cash 69,156 69,156
--------- ---------
Total non-current assets 464,884 445,459
--------- ---------
Total assets $ 566,392 $ 583,785
========= =========
LIABILITIES AND PARTNERS' DEFICIT
Current liabilities
Current portion of loans payable - IEC Funding Corp. $ 24,075 $ 22,819
Accounts payable 14,528 23,701
Accrued interest - IEC Funding Corp. - 11,699
Other accrued expenses 2,037 6,656
Future obligations under interest rate swap agreements 2,022 1,119
--------- ---------
Total current liabilities 42,662 65,994
--------- ---------
Loans payable - IEC Funding Corp. 490,287 479,505
Amounts due utilities for energy bank balances 220,922 228,165
--------- ---------
Total non-current liabilities 711,209 707,670
--------- ---------
Total liabilities 753,871 773,664
--------- ---------
Partners' deficit
General partner (4,616) (4,640)
Limited partners (182,863) (185,239)
--------- ---------
Total partners' deficit (187,479) (189,879)
--------- ---------
Commitments and contingencies - -
Total liabilities and partners' deficit $ 566,392 $ 583,785
========= =========
</TABLE>
The accompanying notes are an integral
part of these financial statements.
<PAGE>
NORTHEAST ENERGY ASSOCIATES, A LIMITED PARTNERSHIP AND
NORTH JERSEY ENERGY ASSOCIATES, A LIMITED PARTNERSHIP
COMBINED STATEMENT OF OPERATIONS (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
THREE MONTHS NINE MONTHS
ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30,
1996 1997 1996 1997
(IN THOUSANDS)
<S> <C> <C> <C> <C>
Revenue
Power sales to utilities $73,170 $82,201 $ 204,710 $ 234,186
Steam sales 1,128 1,176 3,393 3,619
------- ------- --------- ---------
Total revenue 74,298 83,377 208,103 237,805
------- ------- --------- ---------
Costs and expenses
Cost of power and steam sales 32,735 37,500 103,506 114,982
Operation and maintenance 6,238 6,912 17,019 19,668
Depreciation 6,249 6,254 18,732 18,757
General and administrative
expenses 3,481 3,935 10,357 10,755
------- ------- --------- ---------
Total costs and expenses 48,703 54,601 149,614 164,162
------- ------- --------- ---------
Operating income 25,595 28,776 58,489 73,643
------- ------- --------- ---------
Other expense (income)
Amortization of financing costs 587 535 1,800 1,641
Interest expense 12,334 11,783 37,486 35,876
Interest expense on energy
bank balances 4,783 4,400 14,375 12,994
Interest income (2,232) (2,512) (7,673) (7,104)
------- ------- --------- ---------
Total other expense 15,472 14,206 45,988 43,407
------- ------- --------- ---------
Net income $10,123 $14,570 $ 12,501 $ 30,236
======= ======= ========= =========
</TABLE>
The accompanying notes are an integral
part of these financial statements.
<PAGE>
NORTHEAST ENERGY ASSOCIATES, A LIMITED PARTNERSHIP AND
NORTH JERSEY ENERGY ASSOCIATES, A LIMITED PARTNERSHIP
COMBINED STATEMENT OF CASH FLOWS
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NINE MONTHS
ENDED
SEPTEMBER 30,
1996 1997
(IN THOUSANDS)
<S> <C> <C>
Cash flows from operating activities:
Cash received from utilities and other customers $ 216,648 $ 222,337
Cash paid to suppliers (128,969) (129,471)
Interest paid (26,525) (25,052)
Bank commitment fees paid (27) (28)
Interest received 9,282 8,440
Cash payments to general partner for operating activities (3,746) (3,474)
Cash payments to owners/management ( 2,765) (2,359)
--------- ---------
Net cash provided by operating
activities 63,898 70,393
--------- ---------
Cash flows from investing activities:
Net expenditures for facilities (807) (392)
Purchase of other fixed assets (54) (44)
Decrease in restricted cash 9,412 -
--------- ---------
Net cash provided by (used for)
investing activities 8,551 (436)
--------- ---------
Cash flows from financing activities:
Principal payments on debt (12,602) (12,038)
Distributions to partners (30,816) (32,636)
--------- ---------
Net cash used for financing activities (43,418) (44,674)
--------- ---------
Net increase in cash and cash equivalents 29,031 25,283
Cash and cash equivalents at beginning of period 58,277 49,861
--------- ---------
Cash and cash equivalents at end of period $ 87,308 $ 75,144
========= =========
</TABLE>
Non-cash Investing Activities:
At September 30, 1997 accrued capitalized facility costs were approximately
$231,000. December 31, 1996 accrued capitalized facility costs of $165,000
were paid during 1997.
The accompanying notes are an integral
part of these financial statements.
<PAGE>
NORTHEAST ENERGY ASSOCIATES, A LIMITED PARTNERSHIP AND
NORTH JERSEY ENERGY ASSOCIATES, A LIMITED PARTNERSHIP
COMBINED STATEMENT OF CASH FLOWS (CONTINUED)
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (UNAUDITED)
- --------------------------------------------------------------------------------
RECONCILIATION OF NET INCOME TO NET CASH PROVIDED BY
OPERATING ACTIVITIES
<TABLE>
<CAPTION>
NINE MONTHS
ENDED
SEPTEMBER 30,
1996 1997
(IN THOUSANDS)
<S> <C> <C>
Net income $ 12,501 $ 30,236
Adjustments to reconcile
net income to net cash provided
by operating activities:
Depreciation 18,732 18,757
Amortization of financing costs 1,800 1,641
Changes in assets and liabilities:
Accounts receivable (1,129) (11,353)
Fuel inventories (2,116) (776)
Prepaid expenses and
other current assets 780 594
Accounts payable (711) 9,307
Accrued interest 12,218 11,699
Other accrued expenses 741 4,419
Future obligations under
interest rate
swap agreements (1,285) (903)
Amounts due utilities for energy
bank balances 22,963 7,243
Other assets (596) (471)
-------- --------
Net cash provided by operating
activities $ 63,898 $ 70,393
======== ========
</TABLE>
The accompanying notes are an integral
part of these financial statements.
<PAGE>
NORTHEAST ENERGY ASSOCIATES, A LIMITED PARTNERSHIP AND
NORTH JERSEY ENERGY ASSOCIATES, A LIMITED PARTNERSHIP
NOTES TO COMBINED FINANCIAL STATEMENTS (UNAUDITED)
- -------------------------------------------------------------------------------
1. BASIS OF PRESENTATION
The accompanying unaudited combined financial statements should be read in
conjunction with the audited combined financial statements included in the
Annual Report on Form 10-K for the year ended December 31, 1996 for
Northeast Energy Associates, A Limited Partnership, and North Jersey Energy
Associates, A Limited Partnership (together, the "Partnerships") and IEC
Funding Corp.
The results of operations for the periods ended September 30,1997 are
unaudited and are not necessarily indicative of the results to be expected
for the full year. The unaudited financial information at September 30, 1997
and for the periods ended September 30, 1997 contains all adjustments,
consisting only of normal recurring adjustments, considered by management
necessary for a fair presentation of the operating results for such period.
2. DISTRIBUTIONS
Distributions to the partners may be made only after all required funds and
sub-funds have been fully funded as described in the trust indenture. After
funding all amounts required under the indenture, the excess cash generated
during the six month period ended June 30, 1997 was in excess of
approximately $32.6 million. All conditions under the trust indenture for
distributions of such excess cash were satisfied after April 1, 1997
resulting in a distribution of approximately $5.3 million in May and $27.3
million in June to the partners in proportion to their designated interests
in the Partnerships. No distributions were made during the third quarter of
1997. As of November 3, 1997 excess cash of $15 million was available for
distribution.
<PAGE>
IEC FUNDING CORP.
BALANCE SHEET (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DECEMBER 31, SEPTEMBER 30,
1996 1997
(IN THOUSANDS)
<S> <C> <C>
ASSETS
Current assets
Cash $ 1 $ 1
Current portion of notes receivable from
Northeast Energy Associates and North Jersey
Energy Associates (together, the "Partnerships") 24,075 22,819
Interest receivable from the Partnerships - 11,699
-------- --------
Total current assets 24,076 34,519
Notes receivable from the Partnerships 490,287 479,505
-------- --------
Total assets $514,363 $514,024
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current portion of securities payable $ 24,075 $ 22,819
Accrued interest - 11,699
-------- --------
Total current liabilities 24,075 34,518
Securities payable 490,287 479,505
-------- --------
Total liabilities 514,362 514,023
Stockholders' equity
Common stock, no par value, 10,000 shares
authorized, issued and outstanding 1 1
-------- --------
Total liabilities and stockholders' equity $514,363 $514,024
======== ========
</TABLE>
The accompanying notes are an integral
part of these financial statements.
<PAGE>
IEC FUNDING CORP.
STATEMENT OF OPERATIONS (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
1996 1997 1996 1997
(IN THOUSANDS)
<S> <C> <C> <C> <C>
Interest income $ 12,218 $ 11,699 $ 37,186 $ 35,604
Interest expense (12,218) (11,699) (37,186) (35,604)
-------- -------- -------- --------
$ - $ - $ - $ -
======== ======== ======== ========
</TABLE>
The accompanying notes are an integral
part of these financial statements.
<PAGE>
IEC FUNDING CORP.
STATEMENT OF CASH FLOWS (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30,
1996 1997
(IN THOUSANDS)
<S> <C> <C>
Cash Flows from operating activities:
Interest received from Partnerships $ 24,968 $ 23,905
Interest paid (24,968) (23,905)
-------- --------
Net cash provided by operating activities - -
-------- --------
Cash flows from investing activities - -
-------- --------
Cash flows from financing activities:
Principal payment received from partnerships 12,602 12,038
Principal payment on debt (12,602) (12,038)
-------- --------
Net cash provided by financing activities - -
-------- --------
Net increase in cash - -
-------- --------
Cash at beginning of period 1 1
-------- --------
Cash at end of period $ 1 $ 1
-------- --------
</TABLE>
The accompanying notes are an integral
part of these financial statements.
<PAGE>
IEC FUNDING CORP.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
BASIS OF PRESENTATION
The accompanying unaudited financial statements should be read in
conjunction with the audited financial statements included in the Annual
Report on Form 10-K for the year ended December 31, 1996 for IEC Funding
Corp. (the "Company") and the Partnerships.
The unaudited financial information at September 30, 1997 and for the
periods ended September 30, 1997 contains all adjustments, consisting
only of normal recurring adjustments, considered by management necessary
for a fair presentation of the operating results for such period.
<PAGE>
NORTHEAST ENERGY ASSOCIATES, A LIMITED PARTNERSHIP AND
NORTH JERSEY ENERGY ASSOCIATES, A LIMITED PARTNERSHIP
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
- --------------------------------------------------------------------------------
RESULTS OF OPERATIONS
Total revenue for the third quarter of 1997 of $83.4 million increased by $9.1
million (12.2%) as compared to the same period in 1996. Revenue for the nine
months ended September 30, 1997 of $237.8 million increased $29.7 million
(14.3%) as compared to the nine months ended September 30, 1996. An increase in
revenue of approximately $5.8 million for the quarter is the result of
reductions in energy bank principal balances (per scheduled or specified rates
under certain Bellingham power contracts). Power price increases contributed
$3.1 million to the quarterly increase and increased generation contributed $0.2
million. For the nine months ended September 30, 1997 $15.4 million of the
increased revenue is the result of higher generation and increased prices. The
increase in generation is primarily a result of no scheduled major maintenance
outages at the Bellingham facility (during the second quarter of 1996 a major
inspection and maintenance program, scheduled at five year intervals, was
conducted at the Bellingham facility) and fewer curtailment hours requested by
the Sayreville Power Purchaser. It is expected that the remaining curtailment
hours available to the utilities under the respective power purchase agreements
will be requested during the fourth quarter of 1997. Additionally, increased
revenue of $14.3 million, on a year to date basis, resulted from reductions in
energy bank principal balances.
Cost of power and steam sales as a percentage of gross revenue (gross of change
in energy bank balances) was 46.0% for the third quarter of 1997 versus 41.8%
for the third quarter of 1996. Year to date cost as a percentage of gross
revenue was 49.5% in 1997 as compared to 47.8% in 1996. Price increases,
primarily under a fuel supply contract that services both facilities, led to
this increased cost on a quarterly basis. On a year to date basis the increase
in natural gas prices was partially offset by a reduction in extended gas
service rights exercised by a North Jersey Energy Associates' fuel supplier
during the first quarter of 1997 as compared to 1996.
Operation and maintenance (O&M) costs increased $.7 million (10.8%) as compared
to the third quarter of 1996 and increased $2.6 million (15.6%) as compared to
the nine months ended September 30, 1996. The primary cause of the increased
cost is the performance bonus (which is directly related to the higher
generation) payable to the O&M contractor under the Bellingham O&M agreement.
Escalation on O&M contracts of approximately 4% also contributed to the
increased cost both quarterly and year to date.
General and administrative expenses were $3.9 million for the third quarter of
1997 as compared to $3.5 million for the same period in the prior year. On a
year to date basis 1997 costs were $10.8 million as compared to $10.4 million
in 1996. Increases include annual escalation of management fees as well as
increased consulting and overhead costs.
Interest expense decreased $.6 million (4.5%) as compared to the third quarter
of 1996 and decreased $1.6 million (4.3%) as compared to the nine months ended
September 30, 1996. Interest on debt decreased in 1997 as a result of principal
payments made to date. Principal payments are made semi-annually on June 30,
and December 30. Interest on energy bank balances decreased $.4 million (8.0%)
as compared to the third quarter of 1996 and decreased $1.4 million (9.6%) as
compared to the nine months ended September 30, 1996. These decreases are a
result of changes to the underlying amounts accrued for energy bank balances.
LIQUIDITY AND CAPITAL RESOURCES
Cash flow generated during the nine month period ended September 30,1997 was
more than sufficient to fund all operating expenses as well as to fund debt
service requirements for both June and December of 1997. Debt service reserve
requirements specified in the trust indenture remain fulfilled. Through the six
months ended June 30, 1997 excess cash of $32.6 million was distributed to the
partners. While no distributions were made during the third quarter of 1997, as
of November 3, 1997 excess cash of $15 million was available for distribution.
<PAGE>
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
None
Item 2. Changes in Securities
None
Item 3. Defaults Upon Senior Securities
None
Item 4. Submission of Matters to a Vote of Security Holders
None
Item 5. Other Information
None
Item 6. Exhibits and Reports on Form 8-K
None
<PAGE>
Pursuant to the requirements of the Securities Exchange Act of 1934, IEC
Funding Corp. has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
IEC FUNDING CORP.
DATE SIGNATURE AND TITLE
November 14, 1997
- ------------------ ---------------------------------------------------
Maureen P. Herbert
Vice President of Finance
<PAGE>
Pursuant to the requirements of the Securities Exchange Act of 1934, North
Jersey Energy Associates, A Limited Partnership has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly authorized.
NORTH JERSEY ENERGY ASSOCIATES,
A LIMITED PARTNERSHIP
By: INTERCONTINENTAL ENERGY CORPORATION
As General Partner
DATE SIGNATURE AND TITLE
November 14, 1997
- ------------------ ---------------------------------------------------
Maureen P. Herbert
Vice President of Finance
<PAGE>
Pursuant to the requirements of the Securities Exchange Act of 1934,
Northeast Energy Associates, A Limited Partnership has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.
NORTHEAST ENERGY ASSOCIATES,
A LIMITED PARTNERSHIP
By: INTERCONTINENTAL ENERGY CORPORATION
As General Partner
DATE SIGNATURE AND TITLE
November 14, 1997
- ------------------ --------------------------------------------------
Maureen P. Herbert
Vice President of Finance
<PAGE>
Pursuant to the requirements of the Securities Exchange Act of 1934, IEC
Funding Corp. has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
IEC FUNDING CORP.
DATE SIGNATURE AND TITLE
November 14, 1997 /s/ Maureen P. Herbert
- ------------------ ---------------------------------------------------
Maureen P. Herbert
Vice President of Finance
<PAGE>
Pursuant to the requirements of the Securities Exchange Act of 1934, North
Jersey Energy Associates, A Limited Partnership has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly authorized.
NORTH JERSEY ENERGY ASSOCIATES,
A LIMITED PARTNERSHIP
By: INTERCONTINENTAL ENERGY CORPORATION
As General Partner
DATE SIGNATURE AND TITLE
November 14, 1997 /s/ Maureen P. Herbert
- -------------------- ----------------------------------------------------
Maureen P. Herbert
Vice President of Finance
<PAGE>
Pursuant to the requirements of the Securities Exchange Act of 1934,
Northeast Energy Associates, A Limited Partnership has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.
NORTHEAST ENERGY ASSOCIATES,
A LIMITED PARTNERSHIP
By: INTERCONTINENTAL ENERGY CORPORATION
As General Partner
DATE SIGNATURE AND TITLE
November 14, 1997 /s/ Maureen P. Herbert
- -------------------- ----------------------------------------------------
Maureen P. Herbert
Vice President of Finance
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<CIK> 0000934665
<NAME> IEC FUNDING CORP.
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 1
<SECURITIES> 0
<RECEIVABLES> 34,518
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 34,519
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 514,024
<CURRENT-LIABILITIES> 34,518
<BONDS> 479,505
0
0
<COMMON> 1
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 514,024
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> (35,604)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 35,604
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 0
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<CIK> 0000934666
<NAME> NORTH JERSEY ENERGY ASSOCIATES
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 75,144
<SECURITIES> 0
<RECEIVABLES> 55,024
<ALLOWANCES> 0
<INVENTORY> 6,186
<CURRENT-ASSETS> 138,326
<PP&E> 504,093
<DEPRECIATION> 148,263
<TOTAL-ASSETS> 583,785
<CURRENT-LIABILITIES> 65,994
<BONDS> 479,505
0
0
<COMMON> 0
<OTHER-SE> (189,879)
<TOTAL-LIABILITY-AND-EQUITY> 583,785
<SALES> 237,805
<TOTAL-REVENUES> 237,805
<CGS> 0
<TOTAL-COSTS> 153,407<F1>
<OTHER-EXPENSES> 7,531
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 35,876
<INCOME-PRETAX> 30,236
<INCOME-TAX> 0
<INCOME-CONTINUING> 30,236
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 30,236
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1> Includes depreciation of $18,757
</FN>
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<CIK> 0000934667
<NAME> NORTHEAST ENERGY ASSOCIATES
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 75,144
<SECURITIES> 0
<RECEIVABLES> 55,024
<ALLOWANCES> 0
<INVENTORY> 6,186
<CURRENT-ASSETS> 138,326
<PP&E> 504,093
<DEPRECIATION> 148,263
<TOTAL-ASSETS> 583,785
<CURRENT-LIABILITIES> 65,994
<BONDS> 479,505
0
0
<COMMON> 0
<OTHER-SE> (189,879)
<TOTAL-LIABILITY-AND-EQUITY> 583,785
<SALES> 237,805
<TOTAL-REVENUES> 237,805
<CGS> 0
<TOTAL-COSTS> 153,407<F1>
<OTHER-EXPENSES> 7,531
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 35,876
<INCOME-PRETAX> 30,236
<INCOME-TAX> 0
<INCOME-CONTINUING> 30,236
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 30,236
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1> Includes depreciation of $18,757
</FN>
</TABLE>
