<PAGE 1> Exhibit 1 COMMONWEALTH ENERGY SYSTEM CONSOLIDATED CONDENSED BALANCE SHEET SEPTEMBER 30, 1998 ASSETS (ACTUAL AND PRO FORMA) (Dollars in thousands) (Unaudited) Actual Adjustments Pro Forma PROPERTY, PLANT AND EQUIPMENT, at original cost $1,693,579 $(252,509) $1,441,070 Less - Accumulated depreciation 618,987 (173,435) 445,552 1,074,592 (79,074) 995,518 Add - Construction work in process 15,025 (3,857) 11,168 1,089,617 (82,931) 1,006,686 INVESTMENTS 13,135 - 13,135 CURRENT ASSETS Cash and temporary cash investments 3,650 198,740 202,390 Accounts receivable 100,523 (14,157) 86,366 Unbilled revenues 11,382 - 11,382 Prepaid taxes 15,107 (891) 14,216 Inventories and other 42,131 (1,335) 40,796 172,793 182,357 355,150 DEFERRED CHARGES 262,921 39,742 302,663 $1,538,466 $ 139,168 $1,677,634 See accompanying notes. <PAGE 2> Exhibit 1 (Continued) COMMONWEALTH ENERGY SYSTEM CONSOLIDATED CONDENSED BALANCE SHEET SEPTEMBER 30, 1998 CAPITALIZATION AND LIABILITIES (ACTUAL AND PRO FORMA) (Dollars in thousands) (Unaudited) Actual Adjustments Pro Forma CAPITALIZATION Common Equity $ 446,728 $ - $ 446,728 Redeemable Preferred Shares, less current sinking fund requirements 11,380 - 11,380 Long-term debt, including premiums, less maturing debt and current sinking fund requirements 475,317 1,432 476,749 933,425 1,432 934,857 CAPITAL LEASE OBLIGATIONS 11,251 - 11,251 CURRENT LIABILITIES Interim Financing 123,050 (99,568) 23,482 Other Current Liabilities - Current sinking fund requirements 8,473 (350) 8,123 Accounts payable 74,076 (14,085) 59,991 Accrued local property and other taxes 31,103 (1,452) 29,651 Other 77,071 - 77,071 190,723 (15,887) 174,836 313,773 (115,455) 198,318 DEFERRED CREDITS Accumulated deferred income taxes 109,018 (109,018) - Regulatory liability - 364,660 364,660 Unamortized investment tax credits and other 170,999 (2,451) 168,548 280,017 253,191 533,208 COMMITMENTS AND CONTINGENCIES $1,538,466 $139,168 $1,677,634 See accompanying notes.