<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.
</LEGEND>
<CIK>    0000071297
<NAME>   NEW ENGLAND ELECTRIC SYSTEM
<MULTIPLIER>  1,000
       
                                                                     
<FISCAL-YEAR-END>                    DEC-31-1998
<PERIOD-END>                         DEC-31-1998
<PERIOD-TYPE>                             12-MOS
<BOOK-VALUE>                            PER-BOOK
<TOTAL-NET-UTILITY-PLANT>              2,488,426
<OTHER-PROPERTY-AND-INVEST>              220,108
<TOTAL-CURRENT-ASSETS>                   723,418
<TOTAL-DEFERRED-CHARGES>               1,638,583                 <F1>
<OTHER-ASSETS>                                 0
<TOTAL-ASSETS>                         5,070,535
<COMMON>                                    64,970
<CAPITAL-SURPLUS-PAID-IN>                736,744
<RETAINED-EARNINGS>                      998,912
<TOTAL-COMMON-STOCKHOLDERS-EQ>         1,570,003                 <F3>
<PREFERRED-MANDATORY>                          0
<PREFERRED>                               19,480                 <F2>
<LONG-TERM-DEBT-NET>                   1,055,740
<SHORT-TERM-NOTES>                             0
<LONG-TERM-NOTES-PAYABLE>                      0
<COMMERCIAL-PAPER-OBLIGATIONS>                 0
<LONG-TERM-DEBT-CURRENT-PORT>             36,307
<PREFERRED-STOCK-CURRENT>                      0
<CAPITAL-LEASE-OBLIGATIONS>                    0
<LEASES-CURRENT>                               0
<OTHER-ITEMS-CAPITAL-AND-LIAB>         2,389,005
<TOT-CAPITALIZATION-AND-LIAB>          5,070,535
<GROSS-OPERATING-REVENUE>              2,420,533
<INCOME-TAX-EXPENSE>                     122,354
<OTHER-OPERATING-EXPENSES>             1,989,340
<TOTAL-OPERATING-EXPENSES>             2,111,694
<OPERATING-INCOME-LOSS>                  308,839
<OTHER-INCOME-NET>                         6,808
<INCOME-BEFORE-INTEREST-EXPEN>           315,647
<TOTAL-INTEREST-EXPENSE>                 115,873
<NET-INCOME>                             190,042
<PREFERRED-STOCK-DIVIDENDS>                1,915                 <F2>
<EARNINGS-AVAILABLE-FOR-COMM>            190,042
<COMMON-STOCK-DIVIDENDS>                 145,648
<TOTAL-INTEREST-ON-BONDS>                 89,805
<CASH-FLOW-OPERATIONS>                  (157,197)
<EPS-PRIMARY>                              $3.05
<EPS-DILUTED>                              $3.04
<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 includes treasury stock at cost and
                                      unrealized gain on securities.
</FN>