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