<ARTICLE>   UT
<LEGEND>    THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
            FROM THE CONSOLIDATED BALANCE SHEET AND RELATED CONSOLIDATED
            STATEMENTS OF INCOME, RETAINED EARNINGS AND CASH FLOWS OF NEW
            ENGLAND ELECTRIC SYSTEM, AND IS QUALIFIED IN ITS ENTIRETY BY
            REFERENCE TO SUCH FINANCIAL STATEMENTS.
<MULTIPLIER>                                                 1,000
       
                                                  
<FISCAL-YEAR-END>                            DEC-31-1996
<PERIOD-END>                                 SEP-30-1996
<PERIOD-TYPE>                                      9-MOS
<BOOK-VALUE>                                    PER-BOOK
<TOTAL-NET-UTILITY-PLANT>                      3,900,840
<OTHER-PROPERTY-AND-INVEST>                      378,550
<TOTAL-CURRENT-ASSETS>                           492,005
<TOTAL-DEFERRED-CHARGES>                         371,556   <F1>
<OTHER-ASSETS>                                         0
<TOTAL-ASSETS>                                 5,142,951
<COMMON>                                          64,970
<CAPITAL-SURPLUS-PAID-IN>                        738,591
<RETAINED-EARNINGS>                              877,065
<TOTAL-COMMON-STOCKHOLDERS-EQ>                 1,678,041   <F4>
<PREFERRED-MANDATORY>                                  0
<PREFERRED>                                      126,166   <F2>
<LONG-TERM-DEBT-NET>                           1,608,386
<SHORT-TERM-NOTES>                               152,875   <F3>
<LONG-TERM-NOTES-PAYABLE>                              0
<COMMERCIAL-PAPER-OBLIGATIONS>                         0
<LONG-TERM-DEBT-CURRENT-PORT>                     76,885
<PREFERRED-STOCK-CURRENT>                              0
<CAPITAL-LEASE-OBLIGATIONS>                            0
<LEASES-CURRENT>                                       0
<OTHER-ITEMS-CAPITAL-AND-LIAB>                 1,500,598
<TOT-CAPITALIZATION-AND-LIAB>                  5,142,951
<GROSS-OPERATING-REVENUE>                      1,754,187
<INCOME-TAX-EXPENSE>                             103,623
<OTHER-OPERATING-EXPENSES>                     1,389,092
<TOTAL-OPERATING-EXPENSES>                     1,492,715
<OPERATING-INCOME-LOSS>                          261,472
<OTHER-INCOME-NET>                                 7,411
<INCOME-BEFORE-INTEREST-EXPEN>                   268,883
<TOTAL-INTEREST-EXPENSE>                          96,585
<NET-INCOME>                                     160,872
<PREFERRED-STOCK-DIVIDENDS>                        5,998   <F2>
<EARNINGS-AVAILABLE-FOR-COMM>                    160,872   
<COMMON-STOCK-DIVIDENDS>                         114,886   
<TOTAL-INTEREST-ON-BONDS>                         82,599   
<CASH-FLOW-OPERATIONS>                           409,639   
<EPS-PRIMARY>                                      $2.48
<EPS-DILUTED>                                      $2.48
<FN>
<F1> Total deferred charges includes other assets and accrued Yankee Atomic
     costs.
<F2>                                          Preferred stock reflects preferred stock of subsidiaries.  Preferred
                                              stock dividends reflect preferred stock dividends of subsidiaries.
<F3> Short-term notes includes commercial paper obligations and notes payable
     to banks.
<F4> Total common stockholders' equity is reflected net of treasury stock at
     cost.
</FN>