-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, p58CpNK+IUyzt/CpU41g+JQRb3ge2J2ym93sfxmIf54Ih1P2Jje+MmmSFTWeCgyB t9bUqoGkSO2McgkPmH2ELw== 0000950135-94-000353.txt : 19940525 0000950135-94-000353.hdr.sgml : 19940525 ACCESSION NUMBER: 0000950135-94-000353 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 7 CONFORMED PERIOD OF REPORT: 19940331 FILED AS OF DATE: 19940516 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BOSTON EDISON CO CENTRAL INDEX KEY: 0000013372 STANDARD INDUSTRIAL CLASSIFICATION: 4911 IRS NUMBER: 041278810 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-02301 FILM NUMBER: 94528685 BUSINESS ADDRESS: STREET 1: 800 BOYLSTON ST STREET 2: ROOM P-344 CITY: BOSTON STATE: MA ZIP: 02199 BUSINESS PHONE: 6174242000 MAIL ADDRESS: STREET 1: 800 BOYLSTON ST STREET 2: ROOM P-344 CITY: BOSTON STATE: MA ZIP: 82199 10-Q 1 BOSTON EDISON COMPANY FORM 10-Q 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q [x] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 1994 or [ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from __________ to __________ Commission file number 1-2301 BOSTON EDISON COMPANY (Exact name of registrant as specified in its charter) Massachusetts 04-1278810 - - ------------------------------- --------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 800 Boylston Street, Boston, Massachusetts 02199 - - ------------------------------------------ --------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: 617-424-2000 ------------ Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No ----- ----- Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Class Outstanding at April 30, 1994 - - -------------------------- ----------------------------- Common Stock, $1 par value 45,227,121 shares Exhibit list appears on page 12. 2 Part I - Financial Information Item 1 - Financial Statements - - ----------------------------- Boston Edison Company Consolidated Balance Sheets (Unaudited) (in thousands)
March 31, December 31, 1994 1993 ---------- ------------ Assets ------ Utility plant in service $3,937,926 $3,904,776 Less: accumulated depreciation 1,291,567 1,258,359 ---------- ---------- Utility plant, net 2,646,359 2,646,417 Nuclear fuel, net 48,735 53,390 Construction work in progress 150,426 144,835 ---------- ---------- Total property, plant and equipment 2,845,520 2,844,642 Investments in electric companies 24,640 24,292 Nuclear decommissioning fund 69,774 66,060 Current assets: Cash and cash equivalents 6,271 8,768 Accounts receivable 183,277 171,098 Accrued unbilled revenues 33,576 29,823 Fuel, materials and supplies 80,019 79,381 Prepaid expenses and other 11,627 9,738 ---------- ---------- Total current assets 314,770 298,808 Deferred debits: Power contracts 34,566 36,275 Cancelled nuclear unit 14,301 19,067 Nuclear outage costs 23,705 25,524 Pension and postretirement costs 25,714 24,416 Redemption premiums 57,990 59,116 Regulatory asset - income taxes, net 27,257 26,916 Other 46,329 52,183 ---------- ---------- Total assets $3,484,566 $3,477,299 ========== ========== Capitalization and Liabilities - - ------------------------------ Common stock equity: Common stock $ 660,456 $ 657,782 Retained earnings 214,647 218,697 ---------- ---------- Total common stock equity 875,103 876,479 Cumulative preferred stock: Non-mandatory redeemable series 123,000 123,000 Mandatory redeemable series 96,000 96,000 First mortgage bonds 25,000 40,000 Sewage facility revenue bonds, net 32,645 32,497 Debentures 1,215,000 1,200,000 Current liabilities: Preferred stock due within one year 2,000 2,000 Notes payable 205,000 204,151 Accounts payable 135,208 144,760 Interest accrued 12,089 25,467 Dividends payable 22,739 22,696 Other 50,843 27,336 ---------- ---------- Total current liabilities 427,879 426,410 Deferred credits: Power contracts 34,566 36,275 Accumulated deferred income taxes 488,193 484,796 Accumulated deferred investment tax credits 70,121 71,140 Nuclear decommissioning reserve 78,090 73,744 Other 18,969 16,958 Commitments and contingencies - - ---------- ---------- Total capitalization and liabilities $3,484,566 $3,477,299 ========== ==========
The accompanying notes are an integral part of these financial statements. 2 3 Boston Edison Company Consolidated Statements of Income (Unaudited) (in thousands, except per share amounts)
Three Months Ended March 31 --------------------------- 1994 1993 -------- -------- Operating revenues $377,449 $354,752 -------- -------- Operating expenses: Fuel 44,449 45,831 Purchased power 89,198 96,435 Other operations and maintenance 108,163 100,474 Depreciation and amortization 39,116 34,263 Amortization of deferred cost of cancelled nuclear unit 4,948 - Demand side management programs 7,939 8,597 Taxes - property and other 26,321 23,405 Income taxes 11,520 4,025 -------- -------- Total operating expenses 331,654 313,030 -------- -------- Operating income 45,795 41,722 Other income, net 795 288 -------- -------- Operating and other income 46,590 42,010 -------- -------- Interest charges: Long-term debt 26,042 26,073 Other 2,258 2,667 Allowance for borrowed funds used during construction (1,522) (2,182) -------- -------- Total interest charges 26,778 26,558 -------- -------- Net income 19,812 15,452 Preferred dividends provided 3,962 4,075 -------- -------- Balance available for common stock $ 15,850 $ 11,377 ======== ======== Average common shares outstanding 45,189 44,821 ======== ======== Earnings per share of common stock $0.35 $0.25 ======== ======== Dividends declared per common share $0.440 $0.425 ======== ========
The accompanying notes are an integral part of these financial statements. 3 4 Boston Edison Company Consolidated Statements of Cash Flows (Unaudited) (in thousands)
Three Months Ended March 31 --------------------------- 1994 1993 -------- -------- Operating activities: Net income $19,812 $15,452 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 35,469 31,074 Amortization of nuclear fuel 6,081 7,392 Amortization of deferred cost of cancelled nuclear unit, net 4,766 - Other amortization 3,474 932 Allowance for borrowed funds used during construction (1,522) (2,182) Deferred income taxes 2,065 566 Investment tax credits (1,019) (1,075) Amortization of nuclear outage costs, net 1,820 329 Net changes in: Accounts receivable and accrued unbilled revenues (15,932) 9,759 Fuel, materials and supplies (1,820) 3,981 Accounts payable (9,552) (16,518) Other current assets and liabilities 8,283 12,660 Other, net 10,966 (23,999) -------- -------- Net cash provided by operating activities 62,891 38,371 -------- -------- Investing activities: Plant and nuclear fuel expenditures (excluding AFUDC) (35,891) (49,710) Capitalized demand side management expenditures (5,139) (2,115) Decommissioning fund (3,714) (3,510) Investments in electric companies (348) (351) -------- -------- Net cash used by investing activities (45,092) (55,686) -------- -------- Financing activities: Issuance of common stock 2,674 2,667 Issuance of long-term debt 15,000 715,000 Retirement of long-term debt (15,000) (598,625) Change in notes payable 849 (79,500) Dividends paid (23,819) (23,098) -------- -------- Net cash provided (used) by financing activities (20,296) 16,444 -------- -------- Decrease in cash and cash equivalents (2,497) (871) Cash and cash equivalents at beginningof year 8,768 3,947 -------- -------- Cash and cash equivalents at end of period $ 6,271 $ 3,076 ======== ======== Cash paid during the period for: Interest $ 41,678 $ 38,143 Less: amounts capitalized 1,522 2,182 -------- -------- $ 40,156 $ 35,961 ======== ======== Income taxes $ 1,208 $ 4,064 ======== ========
The accompanying notes are an integral part of these financial statements. 4 5 Notes to Consolidated Financial Statements - - ------------------------------------------ A) Basis of Presentation --------------------- The accompanying unaudited consolidated financial statements should be read in conjunction with the Boston Edison Company (the Company) 1993 Annual Report on Form 10-K. In the opinion of the Company, the accompanying unaudited consolidated financial statements reflect all adjustments (which are all of a normal recurring nature) necessary to present fairly the financial position as of March 31, 1994 and the results of operations for the three months ended March 31, 1994 and 1993 and the cash flows for the three months ended March 31, 1994 and 1993. Certain prior year balances have been reclassified to reflect current classifications. The results of operations for the three months ended March 31, 1994 are not indicative of the results which may be expected for the full year. The Company's kWh sales and revenues are seasonal in nature, with both being lower in the spring and fall seasons. In addition, pursuant to retail rate orders of the Massachusetts Department of Public Utilities (DPU), base retail rates billed to customers are higher in the billing months of June through September. Accordingly, a significant portion of the Company's annual earnings occurs in the third quarter. B) Commitments and Contingencies ----------------------------- In March 1991 the Company was named in a lawsuit alleging discriminatory employment practices under the Age Discrimination in Employment Act of 1967 concerning 46 employees affected by the Company's 1988 reduction in force. Legal counsel is vigorously defending this case. Based on the information presently available, the Company does not expect that this litigation or certain other legal matters in which the Company is currently involved will have a material impact on financial condition. However, an unfavorable decision ordered against the Company could have a material impact on quarterly earnings. State regulations revised in 1993 require that properties where releases of hazardous materials occurred in the past be further cleaned up according to a timetable developed by the Massachusetts Department of Environmental Protection. The Company is currently evaluating the potential costs associated with the cleanup of sites where it has been identified as the owner or operator. There are uncertainties associated with these potential costs due to the complexities of cleanup technology, regulatory requirements and the particular characteristics of the different sites. The Company also continues to face possible liability as a potentially responsible party in the cleanup of certain other multi-party hazardous waste sites in Massachusetts and other states. At the majority of these other sites the Company is one of many potentially responsible parties and its alleged share of the responsibility is a small percentage. The Company does not expect any of its potential cleanup liabilities to have a material impact on its financial condition or annual results of operations, although provisions for cleanup costs could have a material impact on quarterly earnings. 5 6 C) Income Taxes ------------ The annual estimated effective income tax rate for 1994 and the actual effective income tax rate for 1993 and the reasons for their differences from the statutory federal income tax rate are explained below:
1994 1993 ------ ------ Statutory tax rate 35.0% 35.0% State income tax, net of federal income tax benefit 4.3 4.2 Investment tax credits (2.0) (2.6) Reversal of deferred taxes - settlement agreement - (13.0) Other (0.1) (0.2) ---- ----- Effective tax rate 37.2% 23.4% ==== =====
D) Long-Term Debt -------------- In March 1994 the Massachusetts Industrial Finance Agency, on behalf of the Company, issued $15 million of 5.75% tax- exempt debentures due in 2014. The proceeds from this issue and sufficient other funds were deposited on March 31, 1994 in an irrevocable trust to pay the principal, call premium and interest payments on $15 million of 10.25% Series U first mortgage bonds. As a result the bonds and cash were removed from the Company's consolidated balance sheet. The bonds were subsequently redeemed on April 1, 1994. On May 2, 1994 the Company redeemed $3.6 million of Series S first mortgage bonds. E) New Accounting Pronouncements ----------------------------- In the first quarter of 1994 the Company adopted Statement of Financial Accounting Standards (SFAS) No. 112, Employers' Accounting for Postemployment Benefits. The statement required the Company to record a liability computed on an actuarial basis for the estimated cost of providing postemployment benefits. Postemployment benefits provided by the Company to former or inactive employees, their beneficiaries and covered dependents consist primarily of disability-related benefits, including workers compensation. The Company previously recognized the cost of these benefits primarily as claims were paid. The adoption of SFAS No. 112 was not material to the Company. SFAS No. 115, Accounting for Certain Investments in Debt and Equity Securities, was also effective in the first quarter of 1994. This statement had no material effect on the Company. 6 7 Item 2 - Management's Discussion and Analysis - - --------------------------------------------- Results of Operations - Three Months ended March 31, 1994 vs. - - ------------------------------------------------------------- Three Months ended March 31, 1993 - - --------------------------------- Earnings per common share for the three months ended March 31, 1994 amounted to $0.35 as compared to $0.25 per common share for the three months ended March 31, 1993. The increase in earnings is primarily the result of the elimination of certain purchased power expenses due to the expiration of a long-term contract, a $29 million annual rate increase effective November 1993 and a 3.1% increase in retail kWh sales. These were partially offset by higher depreciation and amortization expense, increases in pension and other employee benefit expenses and higher income tax expense. The results of operations for the first quarter are not indicative of the results which may be expected for the full year due to the seasonality of the Company's kWh sales and revenues. See Note A to the consolidated financial statements. Operating revenues Operating revenues increased 6.4% as follows:
(in thousands) - - --------------------------------------------------------------------- Retail electric revenues $12,967 Demand side management revenues 1,131 Wholesale and other revenues 5,036 Short-term sales revenues 3,563 - - --------------------------------------------------------------------- Increase in operating revenues $22,697 =====================================================================
Retail electric revenues increased $13 million. The November 1993 retail rate increase resulted in $5.6 million of the increased revenues and $3.5 million was due to a 3.1% increase in retail kWh sales. Performance revenues, which vary annually based on the operating performance of Pilgrim Nuclear Power Station, increased $2.1 million as a result of a higher expected annual capacity factor for the station in 1994 than in 1993. A new $51 million annual conservation charge for recovery of demand side management program costs was implemented in February 1994. The charge will recover $20 million of 1994 program costs and $14 million of amortization of capitalized program costs plus lost base revenues, incentives and a return. The previous $53 million annual charge effective through January 1994 recovered 1992 and 1993 program costs plus lost base revenues and a return. The increase in wholesale and other revenues is due primarily to a decrease in revenue reserves. In 1994 $4.6 million of reserves were recorded related to certain wholesale and contract customers. In 1993 the Company recorded $8.2 million of reserves, of which $6.5 million was estimated as a result of a DPU order on the Company's generating unit performance program. Increased short-term sales revenues are the result of higher Company generation availability and short-term power purchaser requirements. Revenues from short-term sales serve to reduce fuel and purchased power billings to retail customers and therefore have no effect on earnings. 7 8 Operating expenses Total fuel and purchased power expenses decreased $8.6 million. Higher incurred costs due to increased generation and power purchases were more than offset by a decrease in expense caused by the timing effect of fuel and purchased power expense collection. Fuel and purchased power expenses are substantially fully recoverable through fuel and purchased power revenues. Other operations and maintenance expense increased primarily due to a $5 million increase in pension expense and increases in other employee benefit expenses. In accordance with the 1992 settlement agreement the Company records pension expense based upon the estimated funding of the pension plan for the year. Depreciation and amortization expense increased primarily due to a higher depreciable plant balance. In 1994 the Company resumed amortization of the deferred costs of the cancelled Pilgrim 2 nuclear unit. In accordance with the 1992 settlement agreement the Company did not expense any of these costs in 1993. The Company's effective annual income tax rate for 1994 is currently estimated to be 37.2% vs. an actual rate of 23.4% for 1993. The 1993 rate was reduced by adjustments to deferred income taxes of $20 million in accordance with the 1992 settlement agreement. Other interest charges decreased primarily due to a lower average outstanding short-term debt balance. Financial Condition - - ------------------- The Company's 1992 settlement agreement with the DPU provides increased revenues from retail customers over the three-year period ending October 1995. Additionally, a long-term purchased power contract with annual charges of approximately $60 million expired in October 1993 with no related change in revenues. The settlement agreement also limits the annual rate of return on equity during the three-year period to 11.75%, excluding any penalties or rewards from performance incentives. The most significant impact that performance incentives can have on the Company's financial results is based on Pilgrim Station's annual capacity factor. Effective November 1993 an annual capacity factor between 60% and 68% will provide approximately $45 million of revenues through the performance adjustment charge. For each percentage point increase in capacity factor above 68%, annual revenues will increase by approximately $650,000. For each percentage point decrease in capacity factor below 60% (to a minimum of 35%), annual revenues will decrease by approximately $750,000. The capacity factor for the current performance year to date (November 1993 through April 1994) is 81.7%. 8 9 Liquidity - - --------- The Company supplements internally generated funds with external financings, primarily the issuance of short-term commercial paper and bank borrowings. The Company has authority from the Federal Energy Regulatory Commission to issue up to $350 million of short-term debt. The Company has a $200 million revolving credit agreement and arrangements with several banks to provide additional short-term credit on a committed as well as on an uncommitted and as available basis. At March 31, 1994 the Company had $205 million of short-term debt outstanding, none of which was incurred under the revolving credit agreement. Outlook for the Future - - ---------------------- A significant portion of the Company's electricity sales is made to commercial customers rather than industrial customers. As a result the Company's sales have been only moderately impacted by the decline in the local economy. The Company's retail sales increased 3.1% in the first quarter of 1994 due in part to extreme weather conditions in Massachusetts. However, this growth rate is not expected to continue throughout the year. In April 1994 the Massachusetts Supreme Judicial Court issued a favorable decision on the Company's appeal of an order by the DPU that would have required the Company to purchase 132 megawatts of power from Altresco Lynn, LP, an independent power producer, starting as early as 1995. The Company opposed the order as it does not believe it needs any new power for several years. The Court remanded the case to the DPU for further consideration. Other Matters - - ------------- On April 28, 1994, Company President Thomas J. May was elected Chairman and Chief Executive Officer, Executive Vice President George W. Davis was elected President and Chief Operating Officer, and Chairman and Chief Executive Officer Bernard W. Reznicek announced his retirement. The elections and retirement are effective July 1, 1994. On May 6, 1994, the Company and its union locals agreed on new six-year labor contracts. SFAS No. 112 and SFAS No. 115 were effective in the first quarter of 1994. Refer to Note E to the consolidated financial statements for further discussion of these pronouncements. 9 10 Part II - Other Information - - --------------------------- Item 4. Submission of Matters to a Vote of Security Holders - - ------------------------------------------------------------ The Company's Annual Meeting of Stockholders was held on April 22, 1994. The following items were submitted to vote: 1. To elect five Class III directors to serve until the 1997 Annual Meeting. 2. To vote upon a proposal to amend the Articles of Organization of the Company to increase by 500,000 the number of shares of Cumulative Preferred Stock, having a par value of $100, which the Company is authorized to issue. 3. To vote upon a proposal to amend the Articles of Organization of the Company to authorize the issuance of reacquired shares of Cumulative Preferred Stock. 4. To vote upon a proposal to restate the Articles of Organization of the Company to consolidate the present fifteen amendments to the Articles of Organization and the amendments contemplated in Proposals Nos. 2 and 3 hereof into a single document and to delete provisions which are no longer operative. 5. To vote upon a stockholder proposal recommending the immediate shutdown and retirement of the Company's nuclear unit, which the Board of Directors opposes, if the proposal is presented at the meeting. As a result of sufficient votes not received in time for the scheduled meeting for Item 3, the meeting was adjourned until May 26, 1994 to permit further solicitation of proxies with respect to this proposal. Item 5. Other Information - - -------------------------- The following additional information is furnished in connection with the Registration Statement on Form S-3 of the Registrant (File No. 33-57840), filed with the Securities and Exchange Commission on February 3, 1993. Price and dividend information per share of common stock:
Price --------------- Dividend High Low Paid ------- --- -------- First quarter 1994 $29 7/8 $26 $0.44
The last sales price of the Company's common stock on the New York Stock Exchange as reported in the Wall Street Journal for May 10, 1994 was $27 1/4 per share. 10 11 Ratio of earnings to fixed charges and ratio of earnings to fixed charges and preferred stock dividend requirements: Twelve Months ended March 31, 1994: ----------------------------------- Ratio of earnings to fixed charges 2.37X Ratio of earnings to fixed charges and preferred stock dividend requirements 2.01X Year ended December 31, 1993: ----------------------------- Ratio of earnings to fixed charges 2.27X Ratio of earnings to fixed charges and preferred stock dividend requirements 1.94X
11 12 Item 6. Exhibits and Reports on Form 8-K - - ----------------------------------------- a) Exhibits filed herewith: Exhibit 12 - Computation of ratio of earnings to fixed charges 12.1 Computation of ratio of earnings to fixed charges for the twelve months ended March 31, 1994. 12.2 Computation of ratio of earnings to fixed charges and preferred stock dividend requirements for the twelve months ended March 31, 1994. 12.3 Computation of ratio of earnings to fixed charges for the year ended December 31, 1993. 12.4 Computation of ratio of earnings to fixed charges and preferred stock dividend requirements for the year ended December 31, 1993. Exhibit 15 - Letter re unaudited interim financial information 15.1 Report of Independent Accountants Exhibit 99 - Additional Exhibits 99.1 Letter of Independent Accountants Re Form S-3 Registration Statements filed by the Company on September 14, 1990 (File No. 33-36824), February 3, 1993 (File No. 33-57840); Form S-8 Registration Statements filed by the Company on October 10, 1985 (File No. 33-00810), July 28, 1986 (File No. 33-7558), December 31, 1990 (File No. 33-38434), June 5, 1992 (33-48424 and 33-48425) and March 17, 1993 (33-59662 and 33-59682). b) A Form 8-K dated April 28, 1994 was filed with the Securities and Exchange Commission by the Company. This report contained two press releases: one announcing first quarter earnings and a second announcing management changes. 12 13 Signature --------- Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. BOSTON EDISON COMPANY --------------------- (Registrant) Date: May 13, 1994 /s/ Robert J. Weafer, Jr. -------------------------- Robert J. Weafer, Jr. Vice President, Controller and Chief Accounting Officer 13 EX-12.1 2 EXHIBIT 12.1 1 Exhibit 12.1 Boston Edison Company Computation of Ratio of Earnings to Fixed Charges Twelve Months ended March 31, 1994 (in thousands) Net income from continuing operations $122,578 Income taxes 43,526 Fixed charges 121,091 -------- Total $287,195 ======== Interest expense $113,713 Interest component of rentals 7,378 -------- Total $121,091 ======== Ratio of earnings to fixed charges 2.37 ========
14 EX-12.2 3 EXHIBIT 12.2 1 Exhibit 12.2 Boston Edison Company Computation of Ratio of Earnings to Fixed Charges and Preferred Stock Dividend Requirements Twelve Months ended March 31, 1994 (in thousands) Net income from continuing operations $122,578 Income taxes 43,526 Fixed charges 121,091 -------- Total $287,195 ======== Interest expense $113,713 Interest component of rentals 7,378 -------- Subtotal $121,091 -------- Preferred stock dividend requirements 21,490 -------- Total $142,581 ======== Ratio of earnings to fixed charges and preferred stock dividend requirements 2.01 ========
15 EX-12.3 4 EXHIBIT 12.3 1 Exhibit 12.3 Boston Edison Company Computation of Ratio of Earnings to Fixed Charges Year ended December 31, 1993 (in thousands) Net income from continuing operations $118,218 Income taxes 36,146 Fixed charges 121,499 -------- Total $275,863 ======== Interest expense $114,153 Interest component of rentals 7,346 -------- Total $121,499 ======== Ratio of earnings to fixed charges 2.27 ========
16 EX-12.4 5 EXHIBIT 12.4 1 Exhibit 12.4 Boston Edison Company Computation of Ratio of Earnings to Fixed Charges and Preferred Stock Dividend Requirements Year ended December 31, 1993 (in thousands) Net income from continuing operations $118,218 Income taxes 36,146 Fixed charges 121,499 -------- Total $275,863 ======== Interest expense $114,153 Interest component of rentals 7,346 -------- Subtotal $121,499 -------- Preferred stock dividend requirements 20,501 -------- Total $142,000 ======== Ratio of earnings to fixed charges and preferred stock dividend requirements 1.94 ========
17 EX-15.1 6 EXHIBIT 15.1 1 Exhibit 15.1 REPORT OF INDEPENDENT ACCOUNTANTS To the Stockholders and Directors of Boston Edison Company We have reviewed the accompanying consolidated balance sheet of Boston Edison Company (the Company) and subsidiaries as of March 31, 1994 and the related statements of income and cash flows for the three-month periods ended March 31, 1994 and 1993. These financial statements are the responsibility of the Company's management. We conducted our review in accordance with standards established by the American Institute of Certified Public Accountants. A review of interim financial information consists principally of applying analytical procedures to financial data and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformity with generally accepted accounting principles. Boston, Massachusetts COOPERS & LYBRAND April 28, 1994 18 EX-99.1 7 EXHIBIT 99.1 1 Exhibit 99.1 Securities and Exchange Commission 450 Fifth Street, N.W. Washington, D.C. 20549 Re: Boston Edison Company Registration on Form S-3 and Form S-8 We are aware that our report dated April 28, 1994 on our review of the interim financial information of Boston Edison Company for the period ended March 31, 1994 and included in this Form 10-Q is incorporated by reference in the Company's registration statements on Form S-3 (File Nos. 33-36824 and 33- 57840) and on Form S-8 (File Nos. 33-00810, 33-7558, 33-38434, 33-38424, 33-48425, 33-59662 and 33-59682). Pursuant to Rule 436(c) under the Securities Act of 1933, this report should not be considered a part of the registration statements prepared or certified by us within the meaning of Sections 7 and 11 of that Act. Boston, Massachusetts COOPERS & LYBRAND April 28, 1994 19 -----END PRIVACY-ENHANCED MESSAGE-----