MASSACHUSETTS ELECTRIC COMPANY Computation of Ratio of Earnings to Fixed Charges (SEC Coverage) (Unaudited) 12 Months Ended September 30, 1998 Years Ended December 31, Actual ------------------------------------------------------------- (Unaudited) 1997 1996 1995 1994 1993 -------------- ---- ---- ---- ---- ---- (In Thousands) Net Income $ 67,071 $ 65,758 $37,926 $29,101 $34,726 $23,779 - ---------- Add income taxes and fixed charges: Current federal income taxes 26,134 34,244 25,867 9,437 (6,762) 5,606 Deferred federal income taxes 11,318 912 (6,052) 6,156 24,932 3,430 Investment tax credits - net (1,090) (1,103) (1,118) (1,132) (1,228) (1,228) Massachusetts franchise tax 8,460 7,514 4,479 3,935 4,681 3,348 Interest on long-term debt 27,051 27,612 27,089 25,901 20,967 23,403 Interest on short-term debt and other5,632 7,214 6,473 6,784 6,366 3,638 -------- -------- ------- ------- ------- ------- Net earnings available for fixed charges $144,576 $142,151 $94,664 $80,182 $83,682 $61,976 ======== ======== ======= ======= ======= ======= Fixed charges: Interest on long-term debt $ 27,051 $ 27,612 $27,089 $25,901 $20,967 $23,403 Interest on short-term debt and other5,632 7,214 6,473 6,784 6,366 3,638 -------- ------- ------- ------- ------- ------- Total fixed charges $ 32,683 $ 34,826 $33,562 $32,685 $27,333 $27,041 ======== ======= ======= ======= ======= ======= Ratio of earnings to fixed charges 4.42 4.08 2.82 2.45 3.06 2.29 - ----------------------------------