FOR IMMEDIATE RELEASE

CONTACT:  Karen Berardino               Jackie Barry
          (508) 389-3298                (978) 725 - 1240


MASSACHUSETTS DEPARTMENT OF TELECOMMUNICATIONS AND ENERGY
APPROVES NEES/EUA RATE SETTLEMENT

     WESTBOROUGH, Mass., March 15, 2000 - The Massachusetts
Department of Telecommunications and Energy (DTE) has approved
the rate plan agreement proposed by Massachusetts Electric
Company, a subsidiary of New England Electric System (NEES,
NYSE:NES); Eastern Edison Company, a subsidiary of Eastern
Utilities Associates (NYSE: EUA); the Massachusetts Attorney
General; the Massachusetts Division of Energy Resources (DOER);
Associated Industries of Massachusetts (AIM); and The Energy
Consortium (TEC).

     The DTE order approves the merger of Eastern Edison Company
into Massachusetts Electric Company, and approves the rate
consolidation of the two companies, including a plan to reduce
rates for customers.

     The action comes on the heels of a vote yesterday by the
Rhode Island Public Utilities Commission to approve the proposed
rate consolidation settlement filed by NEES subsidiary, The
Narragansett Electric Company, and EUA subsidiaries Blackstone
Valley Electric Company and Newport Electric Company.

     The Massachusetts rate plan agreement, approved by the DTE,
will save an estimated $170 million associated with the merger in
the first five years of the rate plan.  The agreement also will
ensure that customers of the two companies will benefit from
electric distribution rates that will remain among the region's
lowest for a decade.  In addition, the agreement includes a
comprehensive service quality plan that rewards or penalizes the
company based on its annual performance in areas of reliability,
customer satisfaction, and safety.


"This is an important step that brings us closer to finalizing
the NEES/EUA merger which will benefit our current and new
customers," said NEES President and Chief Executive Officer Rick
Sergel.  "We look forward to receiving approval from the U.S.
Securities and Exchange Commission (SEC) to complete the merger."
Both the Massachusetts and Rhode Island settlements will be
implemented following SEC approval and when the operating
company's metering and billing systems are ready.

     Following the merger, NEES will serve a total of 1.7 million
customers in 228 cities and towns in Massachusetts, Rhode Island,
and New Hampshire.