SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1995
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Commission File Number 0-1229
(LOGO) NEW ENGLAND POWER COMPANY
(Exact name of registrant as specified in charter)
MASSACHUSETTS 04-1663070
(State or other (I.R.S. Employer
jurisdiction of Identification No.)
incorporation or
organization)
25 Research Drive, Westborough, Massachusetts 01582
(Address of principal executive offices)
Registrant's telephone number, including area code
(508-389-2000)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period
that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.
Yes (X) No ( )
Common stock, par value $20 per share, authorized and outstanding:
6,449,896 shares at March 31, 1995.
PART I FINANCIAL INFORMATION
Item 1. Financial Statements
- ----------------------------
NEW ENGLAND POWER COMPANY
Statements of Income
Periods Ended March 31
(Unaudited)
Three Months Twelve Months
------------ -----------
1995 1994 1995 1994
---- ---- ---- ----
(In Thousands)
Operating revenue, principally from affiliates $391,118 $399,574 $1,532,301 $1,553,523
-------- -------- ---------- ----------
Operating expenses:
Fuel for generation 60,596 73,359 247,777 273,405
Purchased electric energy 145,341 120,838 538,086 520,898
Other operation 50,156 44,402 202,364 178,700
Maintenance 30,429 20,906 120,051 106,662
Depreciation and amortization 29,933 34,658 133,254 132,451
Taxes, other than income taxes 15,302 15,356 54,346 52,922
Income taxes 19,272 33,182 82,686 100,716
-------- -------- ---------- ----------
Total operating expenses 351,029 342,701 1,378,564 1,365,754
-------- -------- ---------- ----------
Operating income 40,089 56,873 153,737 187,769
Other income:
Allowance for equity funds used during
construction 2,401 1,776 9,767 4,337
Equity in income of nuclear power companies 1,400 1,287 4,929 5,348
Other income (expense) - net, including
related taxes (2,362) (2,371) (284) (1,595)
-------- -------- ---------- ----------
Operating and other income 41,528 57,565 168,149 195,859
-------- -------- ---------- ----------
Interest:
Interest on long-term debt 11,238 9,152 40,797 42,738
Other interest 2,115 39 4,032 4,945
Allowance for borrowed funds used during
construction - credit (2,807) (815) (7,846) (2,390)
-------- -------- ---------- ----------
Total interest 10,546 8,376 36,983 45,293
-------- -------- ---------- ----------
Net income $ 30,982 $ 49,189 $ 131,166 $ 150,566
======== ======== ========== ==========
Statements of Retained Earnings
Retained earnings at beginning of period $372,763 $346,153 $ 370,289 $ 342,655
Net income 30,982 49,189 131,166 150,566
Dividends declared on cumulative
preferred stock (858) (866) (3,432) (4,351)
Dividends declared on common stock (30,637) (24,187) (125,773) (117,711)
Premium on redemption of preferred stock (870)
-------- -------- ---------- ----------
Retained earnings at end of period $372,250 $370,289 $ 372,250 $ 370,289
======== ======== ========== ==========
The accompanying notes are an integral part of these financial statements.
Per share data is not relevant because the Company's common stock is wholly
owned by New England Electric System.
NEW ENGLAND POWER COMPANY
Balance Sheets
(Unaudited)
March 31, December 31,
ASSETS 1995 1994
------ ---- ----
(In Thousands)
Utility plant, at original cost $2,551,652 $2,524,544
Less accumulated provisions for depreciation
and amortization 1,020,356 1,001,393
---------- ----------
1,531,296 1,523,151
Net investment in Seabrook 1 under rate settlement 30,549 38,283
Construction work in progress 330,360 314,777
---------- ----------
Net utility plant 1,892,205 1,876,211
---------- ----------
Investments:
Nuclear power companies, at equity 46,459 46,349
Non-utility property and other investments, at cost 22,979 22,980
---------- ----------
Total investments 69,438 69,329
---------- ----------
Current assets:
Cash 1,507 377
Accounts receivable, principally from sales of
electric energy:
Affiliated companies 197,383 197,655
Others 55,066 69,532
Fuel, materials, and supplies, at average cost 74,124 73,361
Prepaid and other current assets 27,701 33,729
---------- ----------
Total current assets 355,781 374,654
---------- ----------
Accrued Yankee Atomic costs 110,661 122,452
Deferred charges and other assets 183,809 170,192
---------- ----------
$2,611,894 $2,612,838
========== ==========
CAPITALIZATION AND LIABILITIES
------------------------------
Capitalization:
Common stock, par value $20 per share,
authorized and outstanding 6,449,896 shares $ 128,998 $ 128,998
Premiums on capital stocks 86,829 86,829
Other paid-in capital 288,000 288,000
Retained earnings 372,250 372,763
---------- ----------
Total common equity 876,077 876,590
Cumulative preferred stock, par value $100 per share 60,516 60,516
Long-term debt 710,389 695,466
---------- ----------
Total capitalization 1,646,982 1,632,572
---------- ----------
Current liabilities:
Long-term debt due within one year 10,000
Short-term debt (including $8,050,000 and $16,575,000
to affiliates 91,875 145,575
Accounts payable (including $61,414,000 and $69,089,000
to affiliates) 167,818 179,761
Accrued liabilities:
Taxes 21,021 6,133
Interest 9,612 9,914
Other accrued expenses 12,109 10,866
Dividends payable 30,637
---------- ----------
Total current liabilities 343,072 352,249
---------- ----------
Deferred federal and state income taxes 365,973 364,073
Unamortized investment tax credits 58,539 59,014
Accrued Yankee Atomic costs 110,661 122,452
Other reserves and deferred credits 86,667 82,478
---------- ----------
$2,611,894 $2,612,838
========== ==========
The accompanying notes are an integral part of these financial statements.
NEW ENGLAND POWER COMPANY
Statements of Cash Flows
Quarters Ended March 31
(Unaudited)
1995 1994
---- ----
(In Thousands)
Operating activities:
Net income $ 30,982 $ 49,189
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 31,661 35,803
Deferred income taxes and investment tax credits - net 2,763 4,090
Allowance for funds used during construction (5,208) (2,591)
Decrease (increase) in accounts receivable 14,738 24,456
Decrease (increase) in fuel, materials, and supplies (763) (11,978)
Decrease (increase) in prepaid and other current assets 6,028 1,178
Increase (decrease) in accounts payable (11,943) 9,079
Increase (decrease) in other current liabilities 15,830 5,470
Other, net (13,141) (6,746)
-------- --------
Net cash provided by operating activities $ 70,947 $107,950
-------- --------
Investing activities:
Plant expenditures, excluding allowance
for funds used during construction $(40,259) $(62,317)
-------- --------
Net cash used in investing activities $(40,259) $(62,317)
-------- --------
Financing activities:
Dividends paid on common stock $ $(14,512)
Dividends paid on preferred stock (858) (866)
Changes in short-term debt (53,700) (28,650)
Long-term debt - issues 35,000
Long-term debt - retirements (10,000)
-------- --------
Net cash used in financing activities $(29,558) $(44,028)
-------- --------
Net increase in cash and cash equivalents $ 1,130 $ 1,605
Cash and cash equivalents at beginning of period 377 610
-------- --------
Cash and cash equivalents at end of period $ 1,507 $ 2,215
======== ========
Supplementary information:
Interest paid less amounts capitalized $ 11,104 $ 9,068
-------- --------
Federal and state income taxes paid $ (4,771) $ 21,881
-------- --------
The accompanying notes are an integral part of these financial statements.
Note A - Investments in Nuclear Power Companies
- -----------------------------------------------
A summary of combined results of operations, assets and
liabilities of the four Yankee Nuclear Power Companies in which the
Company has investments is as follows:
Quarters Ended
March 31,
- -----------------
1995 1994
---- ----
(In Thousands)
Operating revenue $207,280 $150,649
======== ========
Net income $ 8,318 $ 7,922
======== ========
Company's equity in net income $ 1,400 $ 1,287
======== ========
March 31, December 31,
1995 1994
---- ----
(In Thousands)
Plant $ 518,354 $ 566,836
Other assets 1,475,406 1,304,715
Liabilities and debt (1,746,804) (1,624,643)
----------- -----------
Net assets $ 246,956 $ 246,908
=========== ===========
Company's equity in net assets $ 46,459 $ 46,559
=========== ===========
At March 31, 1995, $12,516,000 of undistributed earnings of
the nuclear power companies were included in the Company's retained
earnings.
The Company has a 20 percent ownership interest in the Maine
Yankee Atomic Power Company (Maine Yankee) which owns an 880
megawatt (MW) nuclear generating station in Wiscasset, Maine.
Since January 1995, the station has been shut down for refueling
and inspection. During the inspection, Maine Yankee detected
substantial deterioration of its steam generator tubes. To correct
the situation, Maine Yankee is considering the installation of
welded sleeves (involving the insertion of a partial new tube
Note A - Investments in Nuclear Power Companies - Continued
- ------------------------------------------------
inside the existing tube) on all of the steam generator tubes.
Assuming Maine Yankee proceeds with sleeving, the station would be
expected to return to service by approximately the end of 1995.
Similar repairs have been undertaken at other nuclear plants in the
United States and abroad, but not on the scale proposed at Maine
Yankee. The cost of sleeving could total approximately $40 million
(the Company's share of approximately $8 million would be charged
to purchased power expense). A final decision regarding sleeving
is not expected until late May 1995.
Note B - Hazardous Waste
- ------------------------
The Federal Comprehensive Environmental Response, Compensation
and Liability Act, more commonly known as the "Superfund" law,
imposes strict, joint and several liability, regardless of fault,
for remediation of property contaminated with hazardous substances.
A number of states, including Massachusetts, have enacted similar
laws.
The electric utility industry typically utilizes and/or
generates in its operations a range of potentially hazardous
products and by-products. New England Electric System subsidiaries
currently have in place an environmental audit program intended to
enhance compliance with existing federal, state, and local
requirements regarding the handling of potentially hazardous
products and by-products.
The Company has been named as a potentially responsible party
(PRP) by either the U.S. Environmental Protection Agency or the
Massachusetts Department of Environmental Protection for six sites
at which hazardous waste is alleged to have been disposed. Private
parties have also contacted or initiated legal proceedings against
the Company regarding hazardous waste cleanup. The Company is
currently aware of other sites, and may in the future become aware
of additional sites, that it may be held responsible for
remediating.
Predicting the potential costs to investigate and remediate
hazardous waste sites continues to be difficult. There are also
significant uncertainties as to the portion, if any, of the
investigation and remediation costs of any particular hazardous
waste site that may ultimately be borne by the Company. Where
Note B - Hazardous Waste- Continued
- ------------------------
appropriate, the Company intends to seek recovery from its insurers
and from other PRPs, but it is uncertain whether and to what extent
such efforts would be successful. The Company believes that
hazardous waste liabilities for all sites of which it is aware will
not be material to its financial position.
Note C - Purchased Power Contract Dispute
- -----------------------------------------
In October 1994, the Company was sued by Milford Power Limited
Partnership (MPLP), a venture of Enron Corporation and Jones
Capital that owns a 149 MW gas-fired power plant in Milford,
Massachusetts. The Company purchases 56 percent of the power
output of the facility under a long-term contract with MPLP. The
suit alleges that the Company has engaged in a scheme to cause MPLP
and its power plant to fail and has prevented MPLP from finding a
long-term buyer for the remainder of the facility's output. The
complaint includes allegations that the Company has violated the
Federal Racketeer Influenced and Corrupt Organizations Act, engaged
in unfair or deceptive acts in trade or commerce, and breached
contracts. MPLP also asserts that the Company deliberately misled
regulatory bodies concerning the Manchester Street repowering
project. MPLP seeks compensatory damages in an unspecified amount,
as well as treble damages. The Company believes that the
allegations of wrongdoing are without merit. The Company has filed
counterclaims and crossclaims against MPLP, Enron Corporation, and
Jones Capital, seeking monetary damages and termination of the
purchased power contract.
MPLP also intervened in the Company's recent rate filing
making similar allegations to those asserted in MPLP's lawsuit.
MPLP also intervened in a recent Massachusetts Electric Company
rate filing.
Note D - New Accounting Standard
- --------------------------------
In March 1995, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards No. 121, Accounting for
the Impairment of Long-Lived Assets and for Long-Lived Assets to Be
Disposed Of (FAS 121), effective for fiscal year 1996. This
standard clarifies when and how to recognize an impairment of long-
lived assets. In addition, FAS 121 requires that all regulatory
assets be written off unless they continue to meet the criteria for
Note D - New Accounting Standard - Continued
- --------------------------------
initially recording such regulatory assets. In order to be
initially recorded, a regulatory asset must have a high probability
of future recovery. However, once written off, a regulatory asset
can be restored if it again becomes probable of recovery. The
impact of this standard will be driven by the facts and
circumstances that exist when the standard is adopted and
thereafter.
Note E
- ------
In the opinion of the Company, these statements reflect all
adjustments (which include normal recurring adjustments) necessary
for a fair statement of the results of its operations for the
periods presented and should be considered in conjunction with the
notes to the financial statements in the Company's 1994 Annual
Report.
Item 2. Management's Discussion and Analysis of Financial
---------------------------------------------------------
Condition and Results of Operations
-----------------------------------
This section contains management's assessment of New England
Power Company's financial condition and the principal factors
having an impact on the results of operations. This discussion
should be read in conjunction with the Company's financial
statements and footnotes and the 1994 Annual Report on Form 10-K.
Earnings
- --------
Net income for the first three months of 1995 decreased $18
million from the corresponding period in 1994. The decrease in
first quarter earnings is due to: (a) increased purchased power
costs resulting from overhauls and refueling shutdowns of
partially-owned generating units, (b) increased maintenance of
wholly-owned generating units, and (c) decreased revenues due to
decreased sales and increased credits to the Company's retail
affiliates. These decreases in net income were partially offset by
a reduction in the Company's Seabrook 1 nuclear unit (Seabrook 1)
amortization in connection with its W-95 rate agreement.
Maine Yankee Atomic Power Company
- ---------------------------------
The Company has a 20 percent ownership interest in the Maine
Yankee Atomic Power Company (Maine Yankee) which owns an 880
megawatt nuclear generating station in Wiscasset, Maine. Since
January 1995, the station has been shut down for refueling and
inspection. During the inspection, Maine Yankee detected
substantial deterioration of its steam generator tubes. To correct
the situation, Maine Yankee is considering the installation of
welded sleeves (involving the insertion of a partial new tube
inside the existing tube) on all of the steam generator tubes.
Assuming Maine Yankee proceeds with sleeving, the station would be
expected to return to service by approximately the end of 1995.
Similar repairs have been undertaken at other nuclear plants in the
United States and abroad, but not on the scale proposed at Maine
Yankee. The cost of sleeving could total approximately $40 million
(the Company's share of approximately $8 million would be charged
to purchased power expense). A final decision regarding sleeving
is not expected until late May 1995.
Rate Activity
- -------------
In February 1995, the Federal Energy Regulatory Commission
(FERC) approved a rate agreement filed by the Company. Under the
agreement, which became effective January 1995, the Company's base
rates are frozen until 1997. Before this rate agreement, the
Company's rate structure contained two surcharges which were
recovering the costs of a coal conversion project and a portion of
the Company's investment in Seabrook 1. Under the rate agreement,
these two surcharges, which were due to expire in mid-1995, have
been rolled into base rates. The agreement also allows for full
recovery of costs associated with the Manchester Street Station
repowering project, which is scheduled for completion later this
year. In addition, the agreement allows the Company to recover
approximately $50 million of deferred costs associated with
terminated purchased power contracts and postretirement benefits
other than pensions (PBOPs) over seven years. The agreement also
provides for full recovery of currently incurred PBOP costs
commencing in 1995. The agreement further provides for the
recovery over three years of $27 million of costs related to the
dismantling of The Narragansett Electric Company's (Narragansett
Electric) retired generating station and the replacement of a
turbine rotor at one of the Company's generating units. The
agreement also increases the Company's recovery of depreciation
expense by approximately $8 million annually to recognize costs
that will be incurred upon the eventual dismantling of its Brayton
Point and Salem Harbor generating plants. Under the agreement,
approximately $15 million of the $38 million in Seabrook 1 costs
due to be recovered in 1995 pursuant to a 1988 settlement agreement
will be deferred and recovered in 1996.
Finally, the agreement provided that the Company would
reimburse its wholesale customers for discounts provided by these
customers under service extension discount (SED) programs. Under
these programs, retail customers are entitled to such discounts
only if they have signed an agreement not to purchase power from
another supplier or generate any additional power themselves for a
three to five year period. Reimbursements in 1995 are expected to
total $13 million.
The FERC's approval of this rate agreement applies to all of
the Company's customers except the Town of Norwood, Massachusetts
and the Milford Power Limited Partnership, who intervened in the
rate case. A separate hearing will be conducted to determine the
appropriate rate to charge these two parties, who together
represent less than 2 percent of the Company's sales.
Operating Revenue
- -----------------
The following table summarizes the changes in operating
revenue:
Increase (Decrease) in Operating Revenue
First Quarter
-------------
1995 vs 1994
-------------
(In Millions)
Sales decrease $(3)
Narragansett integrated
facilities credit (4)
SED reimbursements (3)
Fuel recovery 1
Other 1
---
$(8)
===
The decrease in sales in the first three months of 1995
reflects the effects of a decrease in peak demands due to unusually
mild weather conditions in the first quarter of 1995.
The entire output of Narragansett's generating capacity is made
available to the Company. Narragansett receives a credit on its
purchased power bill from the Company for its fuel costs and other
generation and transmission related costs. The increased credit
reflects increased costs associated with a new transmission line
and with the dismantlement of Narragansett's previously retired
South Street generating facility.
See "Rate Activity" section for a discussion of SED
reimbursements.
Operating Expenses
- ------------------
The following table summarizes the changes in operating
expenses:
Increase (Decrease) in Total Operating Expenses
First Quarter
-------------
1995 vs 1994
-------------
(In Millions)
Fuel costs $ 1
Purchased energy excluding fuel 11
Other operation and maintenance 15
Depreciation and amortization (5)
Taxes (14)
----
$ 8
====
Total fuel costs represents fuel for generation and the
portion of purchased electric energy permitted to be recovered
through the Company's fuel adjustment clause. Purchased energy
excluding fuel represents the remainder of purchased electric
energy costs. The increase in purchased energy excluding fuel
reflects overhauls and refueling shutdowns by partially-owned
nuclear power suppliers in the first quarter of 1995 as well as
amortization of previously deferred purchase power termination
costs.
The increase in other operation and maintenance expense
during the first quarter reflects increased production
maintenance costs associated with overhauls, increased PBOP
costs, and general increases in other areas. Increased PBOP
costs include amortization of costs previously deferred under a
prior FERC settlement, as well as PBOP costs incurred on a
current basis.
The decrease in depreciation and amortization is due to
decreased amortization of the Seabrook 1 nuclear power plant in
accordance with the Company's 1995 rate agreement, partially
offset by the effects of increased depreciation rates approved
in the Company's 1995 rate agreement and depreciation of new
plant expenditures.
The decrease in taxes for the first three months of 1995 is
primarily due to decreased income.
Allowance For Funds Used During Construction (AFDC)
- --------------------------------------------------
AFDC increased for the first quarter of 1995 due to
increased construction work in progress, principally associated
with the repowering of the Manchester Street Station, scheduled
to commence operation in late 1995 (see "Utility Plant
Expenditures and Financings" section).
Interest Expense
- ----------------
The increase in interest expense is primarily due to
increased long-term and short-term debt balances and higher
interest rates in the first quarter of 1995.
Competitive Conditions
- ----------------------
The electric utility business is being subjected to
increasing competitive pressures, stemming from a combination of
trends, including increasing electric rates, improved
technologies, and new regulations and legislation intended to
foster competition. See the Company's Annual Report on Form 10-
K for the year ended December 31, 1994.
On March 29, 1995, the FERC issued a notice of proposed
rule-making in which it stated that recovery in rates of
legitimate and verifiable stranded costs should be allowed and
that direct assignment of stranded costs to departing customers
is the appropriate method for recovery of costs stranded as the
result of wholesale competition. Under the FERC policy
proposal, costs stranded as a result of retail competition would
be subject to state commission review if the state commission
has the necessary statutory authority, and subject to FERC
review if the state commission does not have such authority. A
final decision is expected in late 1995 or early 1996.
In February 1995, the Massachusetts Department of Public
Utilities (MDPU) initiated a proceeding regarding the structure
and regulation of the electric utility industry. Massachusetts
Electric Company (Massachusetts Electric), the Company's retail
affiliate, along with a coalition of environmental and
independent power producer groups, filed a set of principles
which the coalition proposes to be the basis for restructuring.
The proposed principles included provisions to allow gradually
increased customer choice while allowing utilities to recover
the cost of their past commitments, as well as provisions for
protecting residential customers, encouraging renewable
resources and energy conservation, and honoring contracts with
independent power producers. Hearings are underway.
Massachusetts Electric cannot predict what action the MDPU may
take in this proceeding or when such action would take place.
The Rhode Island Public Utilities Commission and the New
Hampshire Public Utilities Commission have also begun
considering industry restructuring issues, including the
recovery of stranded costs.
New Accounting Standard
- -----------------------
In March 1995, the Financial Accounting Standards Board
issued Statement of Financial Accounting Standards No. 121,
Accounting for the Impairment of Long-Lived Assets and for Long-
Lived Assets to Be Disposed Of (FAS 121), effective for fiscal
year 1996. This standard clarifies when and how to recognize an
impairment of long-lived assets. In addition, FAS 121 requires
that all regulatory assets be written off unless they continue
to meet the criteria for initially recording such regulatory
assets. In order to be initially recorded, a regulatory asset
must have a high probability of future recovery. However, once
written off, a regulatory asset can be restored if it again
becomes probable of recovery. The impact of this standard will
be driven by the facts and circumstances that exist when the
standard is adopted and thereafter.
Utility Plant Expenditures and Financings
- -----------------------------------------
Cash expenditures for utility plant totaled $40 million for
the first three months of 1995 including $19 million related to
the Company's share of the Manchester Street Station repowering
project. The funds necessary for utility plant expenditures
during the period were provided by net cash from operating
activities, after the payment of dividends. In the first
quarter of 1995, the Company issued $25 million of long-term
debt at interest rates ranging from 7.40 percent to 7.94
percent. In addition, the Company refinanced $10 million of
variable rate mortgage bonds in the first quarter of 1995. The
Company plans to issue an additional $25 million of long-term
debt by the end of 1995.
At March 31, 1995, the Company had $92 million of short-term
debt outstanding including $84 million in the form of commercial
paper borrowings. At March 31, 1995, the Company had lines of
credit and bond purchase facilities with banks totaling $490
million which are available to provide liquidity support for
commercial paper borrowings and for $342 million of the
Company's outstanding variable rate mortgage bonds in tax-exempt
commercial paper mode and for other corporate purposes. There
were no borrowings under these lines of credit at March 31,
1995.
For the twelve-month period ending March 31, 1995, the ratio
of earnings to fixed charges was 5.36.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
- --------------------------
Information concerning Federal Energy Regulatory Commission
approval of a rate agreement filed by the Company, discussed in
Part I of this report in Management's Discussion and Analysis of
Financial Condition and Results of Operations, is incorporated
herein by reference and made a part hereof.
Information concerning a lawsuit filed against the Company
by Milford Power Limited Partnership on October 28, 1994,
discussed in Note C of Notes of Unaudited Financial Statements,
is incorporated herein by reference and made a part hereof.
Item 6. Exhibits and Reports on Form 8-K
- -----------------------------------------
The Company is filing the following revised exhibit for
incorporation by reference into its registration statements on
Form S-3, Commission file Nos. 33-48257, 33-48897, and 33-49193:
12 Statement re computation of ratios
The Company is filing Financial Data Schedules.
The Company filed reports on Form 8-K dated January 12,
1995 and February 8, 1995, each containing Item 5, Other Events.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report on Form 10-Q
for the quarter ended March 31, 1995 to be signed on its behalf
by the undersigned thereunto duly authorized.
NEW ENGLAND POWER COMPANY
s/ Michael E. Jesanis
Michael E. Jesanis, Treasurer,
Authorized Officer, and
Principal Financial Officer
Date: May 11, 1995