NEW ENGLAND ELECTRIC SYSTEM AND SUBSIDIARIES Consolidated Balance Sheet At June 30, 1998 (Actual and Pro Forma) (Unaudited) ASSETS ------ Actual Adjustments Pro Forma ------ ----------- --------- (In Thousands) Utility plant, at original cost $5,926,625 $(1,838,063) $4,088,562 Less accumulated provisions for depreciation and amortization 2,068,995 (811,213) 1,257,782 ---------- ----------- ---------- 3,857,630(1,026,850) 2,830,780 Construction work in progress 50,194 (5,087) 45,107 ---------- ----------- ---------- Net utility plant 3,907,824(1,031,937) 2,875,887 ---------- ----------- ---------- Investments: Nuclear power companies, at equity 47,443 - 47,443 Other subsidiaries, at equity 36,725 (35,253) 1,472 Other investments 132,769 - 132,769 ---------- ----------- ---------- Total investments 216,937 (35,253) 181,684 ---------- ----------- ---------- Current assets: Cash 23,040 629,613 652,653 Accounts receivable, less reserves of $19,877,000 255,522 - 255,522 Unbilled revenues 76,138 - 76,138 Fuel, materials, and supplies, at average cost 81,810 (50,785) 31,025 Prepaid and other current assets 104,224 (19,302) 84,922 ---------- ----------- ---------- Total current assets 540,734 559,526 1,100,260 ---------- ----------- ---------- Accrued Yankee nuclear plant costs 272,939 - 272,939 Deferred charges and other assets 560,932 1,016,066 1,576,998 ---------- ----------- ---------- $5,499,366 $ 508,402 $6,007,768 ========== =========== ========== CAPITALIZATION AND LIABILITIES ------------------------------ Capitalization: Common share equity: Common shares, par value $1 per share: Authorized - 150,000,000 shares Issued - 64,969,652 shares Outstanding - 62,847,197 shares $ 64,970 $ - $ 64,970 Paid-in capital 736,699 - 736,699 Retained earnings 970,833 2,561 973,394 Treasury stock - 2,122,455 shares (89,045) - (89,045) Unrealized gain on securities, net 7,688 - 7,688 ---------- ----------- ---------- Total common share equity 1,691,145 2,561 1,693,706 Minority interests in consolidated subsidiaries 42,637 - 42,637 Cumulative preferred stock of subsidiaries 39,087 - 39,087 Long-term debt 1,365,848 (303,770) 1,062,078 ---------- ----------- ---------- Total capitalization 3,138,717 (301,209) 2,837,508 ---------- ----------- ---------- Current liabilities: Long-term debt due within one year 27,920 (1,920) 26,000 Short-term debt 656,950 (623,642) 33,308 Accounts payable 161,567 - 161,567 Accrued taxes 19,065 217,692 236,757 Accrued interest 21,980 - 21,980 Dividends payable 35,457 - 35,457 Other current liabilities 121,869 83,553 205,422 ---------- ----------- ---------- Total current liabilities 1,044,808 (324,317) 720,491 ---------- ----------- ---------- Deferred federal and state income taxes 713,527 (216,154) 497,373 Unamortized investment tax credits 88,994 (23,959) 65,035 Accrued Yankee nuclear plant costs 272,939 - 272,939 Other reserves and deferred credits 240,381 1,374,041 1,614,422 ---------- ----------- ---------- $5,499,366 $ 508,402 $6,007,768 ========== =========== ========== The accompanying notes are an integral part of these consolidated financial statements.