<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-31-1997
<PERIOD-END>                         MAR-31-1997
<PERIOD-TYPE>                              3-MOS
<BOOK-VALUE>                            PER-BOOK
<TOTAL-NET-UTILITY-PLANT>              3,906,560
<OTHER-PROPERTY-AND-INVEST>              376,034
<TOTAL-CURRENT-ASSETS>                   478,036
<TOTAL-DEFERRED-CHARGES>                 441,233            <F1>
<OTHER-ASSETS>                                 0
<TOTAL-ASSETS>                         5,201,863
<COMMON>                                                64,970
<CAPITAL-SURPLUS-PAID-IN>                736,773
<RETAINED-EARNINGS>                      910,841
<TOTAL-COMMON-STOCKHOLDERS-EQ>         1,707,540            <F3>
<PREFERRED-MANDATORY>                          0
<PREFERRED>                              126,166            <F2>
<LONG-TERM-DEBT-NET>                   1,501,847
<SHORT-TERM-NOTES>                             0            
<LONG-TERM-NOTES-PAYABLE>                      0
<COMMERCIAL-PAPER-OBLIGATIONS>           113,850
<LONG-TERM-DEBT-CURRENT-PORT>            145,120
<PREFERRED-STOCK-CURRENT>                      0
<CAPITAL-LEASE-OBLIGATIONS>                    0
<LEASES-CURRENT>                               0
<OTHER-ITEMS-CAPITAL-AND-LIAB>         1,607,340
<TOT-CAPITALIZATION-AND-LIAB>          5,201,863
<GROSS-OPERATING-REVENUE>                638,146
<INCOME-TAX-EXPENSE>                      38,765
<OTHER-OPERATING-EXPENSES>               504,419
<TOTAL-OPERATING-EXPENSES>               543,184
<OPERATING-INCOME-LOSS>                   94,962
<OTHER-INCOME-NET>                         1,034
<INCOME-BEFORE-INTEREST-EXPEN>            95,996
<TOTAL-INTEREST-EXPENSE>                  30,676
<NET-INCOME>                              61,820
<PREFERRED-STOCK-DIVIDENDS>                1,833            <F2>
<EARNINGS-AVAILABLE-FOR-COMM>             61,820
<COMMON-STOCK-DIVIDENDS>                  38,271
<TOTAL-INTEREST-ON-BONDS>                 27,528
<CASH-FLOW-OPERATIONS>                   179,360
<EPS-PRIMARY>                               $.95
<EPS-DILUTED>                               $.95
<FN>
<F1> Total deferred charges includes other assets.
<F2> Preferred stock reflects preferred stock of subsidiaries.  Preferred stock dividends
     reflect preferred stock dividends of subsidiaries.
<F3> Total common stockholders equity is reflected net of treasury stock at cost.
</FN>