SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 of the Securities Exchange Act of 1934 Date of Earliest Event Reported: August 16, 1995 NEW ENGLAND POWER COMPANY (exact name of registrant as specified in charter) Massachusetts (state or other jurisdiction of incorporation) 1-6564 (Commission File No.) 04-1663070 (I.R.S. Employer Identification No.) 25 Research Drive, Westborough, Massachusetts 01582 (Address of principal executive offices) (508) 389-2000 (Registrant's telephone number, including area code) Item 5. Other Events --------------------- As previously reported, New England Power Company (NEP), a wholly owned subsidiary of New England Electric System, commenced arbitration in November 1994 to compel the termination of its charter with Intercoastal Bulk Carriers, Inc. (IBC), the owner of the SS ENERGY INDEPENDENCE, a self-unloading coal ship. On August 17, 1995, the Massachusetts Superior Court dismissed a lawsuit filed against NEP in May 1995 by Keystone Shipping Company (Keystone), an affiliate of IBC, challenging NEP's right to terminate the charter. The Court held that Keystone's claims are subject to mandatory arbitration under the charter between NEP and IBC. On August 21, 1995, the arbitration panel unanimously ruled in NEP's favor, declaring that NEP is entitled to terminate the charter and purchase the vessel. IBC has asked a federal court to set aside the arbitration award. NEP derives over 95 percent of its operating revenue from sales of electricity to three retail affiliates of NEP. As previously reported, the three states served by these retail affiliates have been considering proposals for allowing customers greater choice over their electricity supplier. The Massachusetts Department of Public Utilities (MDPU) held hearings on the regulation and structure of the electric utility industry. The Rhode Island Public Utilities Commission (RIPUC) convened a task force of utilities, commercial and industrial customers, and other interested parties to prepare a report on restructuring the industry. In these two proceedings, Massachusetts Electric Company (Mass. Electric) and The Narragansett Electric Company (Narragansett) filed with the respective commissions a set of interdependent principles for industry restructuring. These principles were agreed to by groups representing environmental protection advocates, governmental agencies, non-utility generators, investor-owned utilities, and large and small customer interests. They include provisions for increased customer choice, while allowing utilities the opportunity 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. On August 16, 1995, the MDPU and RIPUC issued separate decisions in these proceedings. The MDPU adopted principles, similar to those filed by Mass. Electric and the other parties listed above, by which future electric utility restructuring proposals shall be guided. These principles include a reasonable opportunity for recovery of stranded costs over a period not to exceed 10 years. The MDPU directed Mass. Electric to file by February 16, 1996 a detailed plan consistent with the principles for moving to a competitive generation market. Other Massachusetts utilities were similarly required to file plans. The RIPUC order adopted the principles (except for one regarding temporary support for renewable fuel technologies) filed by Narragansett and the task force listed above. These principles also include an opportunity for recovery of stranded costs. The RIPUC ordered Narragansett and the task force to file a report no later than February 1, 1996 on its progress in negotiating specific issues regarding competition and open access as outlined in the adopted principles. As previously reported, Narragansett committed to filing with the RIPUC, no later than July 1, 1996, a plan for open access for industrial customers in Rhode Island. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Current Report on Form 8-K to be signed on its behalf by the undersigned thereunto duly authorized. NEW ENGLAND POWER COMPANY s/Michael E. Jesanis By Michael E. Jesanis Treasurer Date: August 23, 1995