January 23, 2001 NORTHEAST UTILITIES AND SUBSIDIARIES FINANCIAL REPORT 												Three Months Ended 												December 31, 											2000				1999 											Thousands of Dollars, Except Share Information) Operating Revenues								$1,521,965 		$1,148,736 Loss)/Earnings for common shares: Before extraordinary loss, net of taxes				$67,788			($15,674) Extraordinary (loss), net of tax benefits of $169,562									(233,881)			- Total Net (Loss)/Income							($166,093)			($15,674) Fully Diluted (Loss)/Earnings Per Common Share: Before extraordinary loss, net of taxes				$0.47			($0.12) Extraordinary (loss), net of taxes					(1.62)			- Total Fully Diluted (Loss)/Earnings Per Common Share	($1.15)			($0.12) Common Shares Outstanding (fully diluted)								144,109,003		131,706,611 												Twelve Months Ended 												December 31, 											2000				1999 											Thousands of Dollars, Except Share Information) Operating Revenues								$5,901,206		$4,471,251 Loss)/Earnings for common shares: Before extraordinary loss, net of taxes				$220,124			$34,216 Extraordinary (loss), net of tax benefits of $169,562									(233,881)			- Total Net (Loss)/Income							($13,757)			$34,216 Fully Diluted (Loss)/Earnings Per Common Share: Before extraordinary loss, net of taxes				$1.55			$0.26 Extraordinary (loss), net of taxes					(1.65)			- Total Fully Diluted (Loss)/Earnings Per Common Share	($0.10)			$0.26 Common Shares Outstanding (fully diluted)								141,967,216		132,031,573 The data contained in this report is preliminary and is unaudited. This report is being submitted for the sole purpose of providing information to present shareholders about the Northeast Utilities System and is not a representation, prospectus, or intended for use in connection with any purchase or sale of securities. Northeast Utilities and Subsidiaries Consolidated Balance Sheets 													December 31 												2000			1999 											(Thousands of Dollars) ASSETS Utility Plant, at cost: Electric										$9,370,176		$9,185,272 Gas and other									861,727			226,002 											10,231,903		9,411,274 Less: Accumulated provision for depreciation		6,556,613			6,088,310 											3,675,290			3,322,964 Unamortized PSNH acquisition costs					-				324,437 Construction work in progress						228,330			177,504 Nuclear fuel, net								128,261			122,529 Total net utility plant							4,031,881			3,947,434 Other Property and Investments: Nuclear decommissioning trusts, at market			740,058			711,910 Investments in regional nuclear generating companies, at equity							62,477			81,503 Other, at cost									137,291			94,768 											939,826			888,181 Current Assets: Cash and cash equivalents						200,017			255,154 Investments in securitizable assets				98,146			107,620 Receivables, net								497,449			310,190 Unbilled revenues								121,090			75,728 Fuel, materials and supplies, at average cost		163,711			171,496 Recoverable energy costs, net - current portion		145,855			73,721 Prepayments and other							194,437			77,371 											1,420,705			1,071,280 Deferred Charges: Regulatory assets: Recoverable nuclear costs						2,081,132			2,210,767 Income taxes, net								636,295			636,563 Deferred costs - nuclear plants					29,000			111,588 Unrecovered contractual obligations				255,809			349,189 Recoverable energy costs, net						186,524			228,166 Other										91,409			106,166 Unamortized debt expense							33,475			39,192 Goodwill and other purchased intangible assets		324,389			23,542 Other										211,134			75,984 											3,849,167			3,781,157 Total Assets									$10,241,579		$9,688,052 													December 31 												2000			1999 											(Thousands of Dollars) CAPITALIZATION AND LIABILITIES Capitalization: Common shareholders' equity: Common shares, $5.00 par value - authorized 225,000,000 shares; 148,781,861 shares issued and 143,820,405 shares outstanding in 2000 and 137,393,829 shares issued and 131,980,284 shares outstanding in 1999								$693,345			$636,405 Capital surplus, paid in							927,059			776,290 Temporary equity from stock forward				215,000			215,000 Deferred contribution plan - employee stock ownership plan									(114,463)			(127,725) Retained earnings								510,702			581,817 Accumulated other comprehensive income				1,769			1,524 Total common shareholders' equity					2,233,412			2,083,311 Preferred stock not subject to mandatory redemption	136,200			136,200 Preferred stock subject to mandatory redemption		15,000			121,289 Long-term debt									2,029,593			2,372,341 Total capitalization							4,414,205			4,713,141 Minority Interest in Consolidated Subsidiary			100,000			100,000 Obligations Under Capital Leases					47,234			62,824 Current Liabilities: Notes payable to banks							1,309,977			278,000 Long-term debt and preferred stock - current portion								340,041			503,315 Obligations under capital leases - current portion								112,645			118,469 Accounts payable								538,983			347,321 Accrued taxes									115,932			158,684 Accrued interest								41,131			37,904 Other										144,820			126,768 											2,603,529			1,570,461 Deferred Credits and Other Long-term Liabilities: Accumulated deferred income taxes					1,533,362			1,688,114 Accumulated deferred investment tax credits			153,155			140,407 Decommissioning obligation - Millstone 1			692,560			702,351 Deferred contractual obligations					244,608			358,387 Other										452,926			352,367 											3,076,611			3,241,626 Total Capitalization and Liabilities				$10,241,579		$9,688,052 The data contained in this report is preliminary and is audited. This report is being submitted for the sole purpose of providing information to present shareholders about the Northeast Utilities System and is not a representation, prospectus, or intended for use in connection with any purchase or sale of securities. Northeast Utilities and Subsidiaries Consolidated Statements of Income 											Three Months Ended 											December 31, 											2000				1999 											(Thousands of Dollars, 											Except Share Information) Operating Revenues								$1,521,965		$1,148,736 Operating Expenses: Operation - Fuel, purchased and net interchange power			817,911			437,025 Other										222,125			280,004 Maintenance									74,547			67,223 Depreciation									62,307			57,598 Amortization of regulatory assets, net				87,679			378,514 Federal and state income taxes					68,337			68,927 Taxes other than income taxes						59,730			59,254 Gain on sale of utility plant						-				(287,672) Total operating expenses							1,392,636			1,060,873 Operating Income								129,329			87,863 Other Income/(Loss): Equity in earnings of regional nuclear generating and transmission companies						6,846			(853) Nuclear related costs							1,437			(50,010) Other, net									(12,633)			(23,111) Minority interest in loss of subsidiary				(2,325)			(2,325) Income taxes									23,322			43,277 Other income/(loss), net							16,647			(33,022) Income before interest charges					145,976			54,841 Interest Charges: Interest on long-term debt						44,559			62,525 Other interest									30,890			2,780 Interest charges, net							75,449			65,305 Income/(loss) after interest charges				70,527			(10,464) Preferred Dividends of Subsidiaries				2,739			5,210 Income/(loss) before extraordinary loss, net of taxes									67,788			(15,674) Extraordinary (loss), net of tax benefits of $169,562	(233,881)			- Net (Loss)/Income								($166,093)		($15,674) Fully Diluted (Loss)/Earnings Per Common Share: Before extraordinary loss, net of taxes				$0.47			($0.12) Extraordinary (loss), net of taxes					(1.62)			- Total Fully Diluted (Loss)/Earnings Per Common Share	($1.15)			($0.12) Common Shares Outstanding (fully diluted)								144,109,003		131,706,611 											Twelve Months Ended 											December 31, 											2000				1999 											(Thousands of Dollars, 											Except Share Information) Operating Revenues								$5,901,206		$4,471,251 Operating Expenses: Operation - Fuel, purchased and net interchange power			3,321,226			1,898,314 Other										850,192			855,917 Maintenance									255,884			340,419 Depreciation									239,798			302,305 Amortization of regulatory assets, net				276,139			596,437 Federal and state income taxes					239,789			180,883 Taxes other than income taxes						238,587			261,353 Gain on sale of utility plant						-				(308,914) Total operating expenses							5,421,615			4,126,714 Operating Income								479,591			344,537 Other Income/(Loss): Equity in earnings of regional nuclear generating and transmission companies						14,586			5,034 Nuclear related costs							(17,907)			(71,066) Other, net									(1,689)			(30,855) Minority interest in loss of subsidiary				(9,300)			(9,300) Income taxes									68,306			82,272 Other income/(loss), net							53,996			(23,915) Income before interest charges					533,587			320,622 Interest Charges: Interest on long-term debt						200,696			258,093 Other interest									98,605			5,558 Interest charges, net							299,301			263,651 Income/(loss) after interest charges				234,286			56,971 Preferred Dividends of Subsidiaries				14,162			22,755 Income/(loss) before extraordinary loss, net of taxes									220,124			34,216 Extraordinary (loss), net of tax benefits of $169,562	(233,881)			- Net (Loss)/Income								($13,757)			$34,216 Fully Diluted (Loss)/Earnings Per Common Share: Before extraordinary loss, net of taxes				$1.55			$0.26 Extraordinary (loss), net of taxes					(1.65)			- Total Fully Diluted (Loss)/Earnings Per Common Share	($0.10)			$0.26 Common Shares Outstanding (fully diluted)								141,967,216		132,031,573 The data contained in this report is preliminary and is unaudited. This report is being submitted for the sole purpose of providing information to present shareholders about the Northeast Utilities System and is not a representation, prospectus, or intended for use in connection with any purchase or sale of securities.