NEW ENGLAND POWER COMPANY Balance Sheet At June 30, 1998 (Actual and Pro Forma) (Unaudited) ASSETS ------ Actual Adjustments Pro Forma ------ ----------- --------- (In Thousands) Utility plant, at original cost $3,084,842 $(1,848,677) $1,236,165 Less accumulated provisions for depreciation and amortization 1,234,869 (807,674) 427,195 ------------------------------- 1,849,973(1,041,003) 808,970 Construction work in progress 30,217 (5,087) 25,130 ------------------------------- Net utility plant 1,880,190(1,046,090) 834,100 ------------------------------- Investments: Nuclear power companies, at equity 47,443 - 47,443 Non-utility property and other investments 35,191 (769) 34,422 ------------------------------- Total investments 82,634 (769) 81,865 ------------------------------- Current assets: Cash 1,001 659,481 660,482 Accounts receivable: Affiliated companies 232,000 - 232,000 Others 27,031 - 27,031 Fuel, materials, and supplies, at average cost 59,680 (50,724) 8,956 Prepaid and other current assets 55,514 (17,876) 37,638 ------------------------------- Total current assets 375,226 590,881 966,107 ------------------------------- Accrued Yankee nuclear plant costs 272,939 - 272,939 Deferred charges and other assets 462,542 1,016,642 1,479,184 ------------------------------- $3,073,531$ 560,664$3,634,195 =============================== 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 86,779 - 86,779 Other paid-in capital 319,818 34,484 354,302 Retained earnings 462,968 1,503 464,471 Unrealized gains on securities, net 55 - 55 ------------------------------- Total common equity 998,618 35,987 1,034,605 Cumulative preferred stock, par value $100 per share 39,666 - 39,666 Long-term debt 647,829 (278,010) 369,819 ------------------------------- Total capitalization 1,686,113 (242,023) 1,444,090 ------------------------------- Current liabilities: Short-term debt (including $159,175,000 to affiliates) 366,950 (366,950) - Accounts payable (including $6,118,000 to affiliates) 113,723 - 113,723 Accrued liabilities: Taxes 10,552 - 10,552 Interest 8,217 - 8,217 Other accrued expenses 30,913 80,525 111,438 ------------------------------- Total current liabilities 530,355 (286,425) 243,930 ------------------------------- Deferred federal and state income taxes 414,527 (211,625) 202,902 Unamortized investment tax credits 52,452 (22,333) 30,119 Accrued Yankee nuclear plant costs 272,939 - 272,939 Other reserves and deferred credits 117,145 1,323,070 1,440,215 ------------------------------- $3,073,531$ 560,664$3,634,195 =============================== The accompanying notes are an integral part of these financial statements.