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: May 30, 1996 NEW ENGLAND POWER COMPANY (exact name of registrant as specified in charter) Massachusetts 1-6564 04-1663070 (state or other (Commission (I.R.S. Employer jurisdiction of File No.) Identification No.) incorporation) 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, in February 1996, legislation was introduced in the Rhode Island House of Representatives that would restructure the electric utility industry in Rhode Island. The legislation would impact The Narragansett Electric Company (Narragansett), a subsidiary of New England Electric System, and Narragansett's wholesale power supplier, New England Power Company (NEP). On May 30, 1996, the Corporations Committee of the Rhode Island House of Representatives approved an amended form of the proposed legislation. The original bill would have allowed electric customers in Rhode Island to choose their power supplier over a four-year period beginning in 1998. Under the original bill, utilities would be allowed to recover the cost of past generation commitments through a transition access charge on utility transmission and distribution wires which would be set at three cents per kilowatthour through 2000 and was expected to decline thereafter. Unrecovered commitments would earn a return on equity of 1 percentage point over the rate on long-term "BBB" rated utility bonds. The major changes approved by the Corporations Committee would (i) accelerate the timetable for introducing retail competition in Rhode Island (with 10% of customers having access on July 1, 1997, another 10% on January 1, 1998, and the balance of customers on July 1, 1998), (ii) lower the initial access charge from 3 cents per kilowatthour to 2.8 cents per kilowatthour, and (iii) require that the aggregate amount of transition access charges recoverable from customers be reduced by the fair market value of utilities' non-nuclear generating assets. The value of such generating assets would be determined by leasing, selling, spinning off or otherwise disposing of at least a 15 percent interest in such generating facilities. For NEP, the remaining unrecovered commitments during the recovery period would earn a return on equity of 11 percent. Utilities would be required to file by July 1, 1997 a plan for complying with these market valuation provisions. The Rhode Island House of Representatives expects to vote on the amended legislation in the near future. Consideration by the Rhode Island Senate is expected to be completed by this summer. 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: May 31, 1996