-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, OAFe8YPYqOnzMCOHix4c+DtTkTWdXAE9QB8xphktnSJOBYNI9/23sW9MxIbr6Sll 9gC/H5OIpvMzDkYOOznCDw== 0000063073-96-000002.txt : 19960514 0000063073-96-000002.hdr.sgml : 19960514 ACCESSION NUMBER: 0000063073-96-000002 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 19960331 FILED AS OF DATE: 19960513 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: MASSACHUSETTS ELECTRIC CO CENTRAL INDEX KEY: 0000063073 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 041988940 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-05464 FILM NUMBER: 96560923 BUSINESS ADDRESS: STREET 1: 25 RESEARCH DR CITY: WESTBOROUGH STATE: MA ZIP: 01582 BUSINESS PHONE: 5083892000 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, 1996 OR ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 0-5464 (LOGO) MASSACHUSETTS ELECTRIC COMPANY (Exact name of registrant as specified in charter) MASSACHUSETTS 04-1988940 (State or other (I.R.S. Employer jurisdiction of Identification No.) incorporation or organization) 25 Research Drive, Westborough, Massachusetts 01582 (Address of principal executive offices) Registrant's telephone number, including area code (508-389-2000) 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 ( ) Common stock, par value $25 per share, authorized and outstanding: 2,398,111 shares at March 31, 1996. PART I FINANCIAL INFORMATION Item 1. Financial Statements - ---------------------------- MASSACHUSETTS ELECTRIC COMPANY Statements of Income Periods Ended March 31 (Unaudited)
Three Months Twelve Months ------------ ------------- 1996 1995 1996 1995 ---- ---- - ---- ---- (In Thousands) Operating revenue $390,819 $373,092$1,523,403 $1,473,450 -------- - ------------------ ---------- Operating expenses: Purchased electric energy, principally from New England Power Company, an affiliate 287,385 284,538 1,116,520 1,073,778 Other operation 47,198 44,911 208,947 214,142 Maintenance 8,056 7,432 30,149 35,084 Depreciation 12,037 11,465 45,401 43,415 Taxes, other than income taxes 8,745 8,354 30,413 28,709 Income taxes 6,711 3,043 22,965 19,429 -------- - ------------------ ---------- Total operating expenses 370,132 359,743 1,454,395 1,414,557 -------- - ------------------ ---------- Operating income 20,687 13,349 69,008 58,893 Other income (expense) - net, including related taxes (2,037) 326 (2,904) 786 -------- - ------------------ ---------- Operating and other income 18,650 13,675 66,104 59,679 -------- - ------------------ ---------- Interest: Interest on long-term debt 6,725 6,105 26,521 22,069 Other interest 1,387 2,641 5,530 7,840 Allowance for borrowed funds used during construction - credit (196) (197) (656) (510) -------- - ------------------ ---------- Total interest 7,916 8,549 31,395 29,399 -------- - ------------------ ---------- Net income $ 10,734 $ 5,126$ 34,709 $ 30,280 ======== ================== ========== Statements of Retained Earnings Retained earnings at beginning of period $150,308 $136,911$ 135,264 $ 137,475 Net income 10,734 5,126 34,709 30,280 Dividends declared on cumulative preferred stock (779) (778) (3,115) (3,114) Dividends declared on common stock (9,592) (5,995) (16,187) (29,377) -------- - ------------------ ---------- Retained earnings at end of period $150,671 $135,264$ 150,671 $ 135,264 ======== ================== ========== The accompanying notes are an integral part of these financial statements. Per share data is not relevant because the Company's common stock is wholly- owned by New England Electric System.
MASSACHUSETTS ELECTRIC COMPANY Balance Sheets (Unaudited)
March 31, December 31, ASSETS 1996 1995 ------ ---- ---- (In Thousands) Utility plant, at original cost $1,431,625 $1,420,069 Less accumulated provisions for depreciation 407,116 399,711 ---------- ---------- 1,024,509 1,020,358 Construction work in progress 27,878 21,118 ---------- ---------- Net utility plant 1,052,387 1,041,476 ---------- ---------- Current assets: Cash 1,209 1,840 Accounts receivable: From sales of electric energy 171,245 160,795 Other (including $4,540,000 and $1,776,000 from affiliates) 6,397 3,527 Less reserves for doubtful accounts 13,552 12,544 ---------- ---------- 164,090 151,778 Unbilled revenues 39,900 49,800 Materials and supplies, at average cost 11,341 10,602 Prepaid and other current assets 23,434 22,514 ---------- ---------- Total current assets 239,974 236,534 ---------- ---------- Deferred charges and other assets 63,160 65,090 ---------- ---------- $1,355,521 $1,343,100 ========== ========== CAPITALIZATION AND LIABILITIES ------------------------------ Capitalization: Common stock, par value $25 per share, authorized and outstanding 2,398,111 shares $ 59,953 $ 59,953 Premiums on capital stocks 45,862 45,862 Other paid-in capital 155,310 155,310 Retained earnings 150,671 150,308 ---------- ---------- Total common equity 411,796 411,433 Cumulative preferred stock 50,000 50,000 Long-term debt 353,312 353,267 ---------- ---------- Total capitalization 815,108 814,700 ---------- ---------- Current liabilities: Short-term debt (including $11,250,000 and $1,000,000 to affiliates) 46,475 55,450 Accounts payable (including $162,150,000 and $165,515,000 to affiliates) 171,477 181,943 Accrued liabilities: Taxes 16,832 7,371 Interest 6,861 9,502 Other accrued expenses 39,979 17,136 Customer deposits 4,496 4,633 Dividends payable 10,371 1,977 ---------- ---------- Total current liabilities 296,491 278,012 ---------- ---------- Deferred federal and state income taxes 177,570 184,575 Unamortized investment tax credits 17,404 17,684 Other reserves and deferred credits 48,948 48,129 ---------- ---------- $1,355,521 $1,343,100 ========== ========== The accompanying notes are an integral part of these financial statements.
MASSACHUSETTS ELECTRIC COMPANY Statements of Cash Flows Quarters Ended March 31 (Unaudited)
1996 1995 ---- ---- (In Thousands) Operating activities: Net income $ 10,734 $ 5,126 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 12,037 11,465 Deferred income taxes and investment tax credits, net (7,279) (2,346) Allowance for funds used during construction (196) (197) Decrease (increase) in accounts receivable, net and unbilled revenues (2,412) 11,681 Decrease (increase) in materials and supplies (739) (1,045) Decrease (increase) in prepaid and other current assets (920) 1,048 Increase (decrease) in accounts payable (10,466) (20,091) Increase (decrease) in other current liabilities 29,526 5,282 Other, net 2,993 (1,027) -------- -------- Net cash provided by operating activities $ 33,278 $ 9,896 -------- -------- Investing activities: Plant expenditures, excluding allowance for funds used during construction $(22,779) $(20,605) Other investing activities (178) (415) -------- -------- Net cash used in investing activities (22,957) $(21,020) -------- -------- Financing activities: Dividends paid on common stock $ (1,198) $(13,190) Dividends paid on preferred stock (779) (778) Long-term debt - issues 48,000 Long-term debt - retirements (10,000) Changes in short-term debt (8,975) (13,095) -------- -------- Net cash provided by (used in) financing activities $(10,952) $ 10,937 -------- -------- Net decrease in cash and cash equivalents $ (631) $ (187) Cash and cash equivalents at beginning of period 1,840 1,225 -------- -------- Cash and cash equivalents at end of period $ 1,209 $ 1,038 ======== ======== Supplementary information: Interest paid less amounts capitalized $ 10,290 $ 9,843 -------- -------- Federal and state income taxes paid (refunded) $ 4,780 $ (9,000) -------- -------- The accompanying notes are an integral part of these financial statements.
Note A - Hazardous Waste - ------------------------ The Federal Comprehensive Environmental Response, Compensation and Liability Act, more commonly known as the "Superfund" law, imposes strict, joint and several liability, regardless of fault, for remediation of property contaminated with hazardous substances. A number of states, including Massachusetts, have enacted similar laws. The electric utility industry typically utilizes and/or generates in its operations a range of potentially hazardous products and by-products. New England Electric System subsidiaries currently have an environmental audit program in place intended to enhance compliance with existing federal, state, and local requirements regarding the handling of potentially hazardous products and by-products. The Company has been named as a potentially responsible party (PRP) by either the U.S. Environmental Protection Agency or the Massachusetts Department of Environmental Protection for 19 sites at which hazardous waste is alleged to have been disposed. Private parties have also contacted or initiated legal proceedings against the Company regarding hazardous waste cleanup. The most prevalent types of hazardous waste sites with which the Company has been associated are manufactured gas locations. The Company is aware of approximately 35 such locations in Massachusetts (including eight of the 19 locations for which the Company is a PRP). The Company is currently aware of other sites, and may in the future become aware of additional sites, that it may be held responsible for remediating. In 1993, the Massachusetts Department of Public Utilities approved a rate agreement filed by the Company that allows for remediation costs of former manufactured gas sites and certain other hazardous waste sites located in Massachusetts to be met from a non-rate-recoverable, interest-bearing fund of $30 million established on the Company's books. Rate-recoverable contributions of $3 million, adjusted for inflation, are added to the fund annually in accordance with the agreement. Any shortfalls in the fund would be paid by the Company and be recovered through rates over seven years. Predicting the potential costs to investigate and remediate hazardous waste sites continues to be difficult. There are also significant uncertainties as to the portion, if any, of the investigation and remediation costs of any particular hazardous waste site that may ultimately be borne by the Company. Where appropriate, the Company intends to seek recovery from its insurers and from other PRPs, but it is uncertain whether, and to what extent, such efforts will be successful. At March 31, 1996, Note A - Hazardous Waste - Continued - ------------------------------------ the Company had total reserves for environmental response costs of $39 million and a related regulatory asset of $15 million. The Company believes that hazardous waste liabilities for all sites of which it is aware, and which are not covered by a rate agreement, are not material to its financial position. Note B - New Accounting Standard - -------------------------------- In March 1995, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 121, Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of (FAS 121). This standard clarifies when and how to recognize an impairment of long-lived assets. If competitive or regulatory change should cause a substantial revenue loss, a write-down of plant assets could be required pursuant to FAS 121. In addition, FAS 121 requires that all regulatory assets, which must have a high probability of recovery to be initially established, must continue to meet that high probability standard to avoid being written off. However, if written off, a regulatory asset can be restored if it again has a high probability of recovery. This standard did not have a material impact on the financial condition or results of operations upon adoption. However, the impact in future periods may change as competitive factors and restructuring influence the electric utility industry. Note C - ------ In the opinion of the Company, these statements reflect all adjustments (which include normal recurring adjustments) necessary for a fair statement of the results of its operations for the periods presented and should be considered in conjunction with the notes to the financial statements in the Company's 1995 Annual Report. Item 2. Management's Discussion and Analysis of Financial --------------------------------------------------------- Condition and Results of Operations ----------------------------------- This section contains management's assessment of Massachusetts Electric Company's financial condition and the principal factors having an impact on the results of operations. This discussion should be read in conjunction with the Company's financial statements and footnotes and the 1995 Annual Report on Form 10-K. Earnings -------- Net income for the first quarter of 1996 increased $6 million compared with the corresponding period last year. The increase in revenues is primarily due to sales growth and rate increases. Kilowatt-hour (kWh) sales to ultimate customers increased 5.6 percent in the first quarter of 1996 due to a return to more normal weather conditions as compared with the unusually mild weather experienced in the first quarter of 1995. Partially offsetting these increases in revenues was an increase in operation and maintenance expenses. Competitive Conditions ---------------------- The electric utility business is being subjected to rapidly increasing competitive pressures, stemming from a combination of trends, including the presence of surplus generating capacity, a disparity in electric rates among regions of the country, improvements in generation efficiency, increasing demand for customer choice, and new regulations and legislation intended to foster competition. See the Company's Annual Report on Form 10-K for the year ended December 31, 1995. In states across the country, including Massachusetts, there have been an increasing number of proposals to allow retail customers to choose their electricity supplier, with incumbent utilities required to deliver that electricity over their transmission and distribution systems (also known as "retail wheeling"). Choice: New England In October 1995, the NEES companies announced a plan, Choice: New England, to allow all customers of electric utilities in Massachusetts, Rhode Island, and New Hampshire to choose their power supplier beginning in 1998. Under the plan, the pricing of generation would be deregulated; however, transmission and distribution rates would remain regulated. Under Choice: New England, the Company would no longer sell electricity to its customers. Instead, customers would purchase electricity from a supplier of their choice, with the Company remaining responsible for providing distribution services to customers under regulated rates. Transmission services would be provided by a new affiliate of the Company, which is being formed by New England Electric System (NEES) to provide comparable service across the NEES companies' transmission system. Under Choice: New England, the Company's wholesale contract with New England Power Company (NEP) would be terminated. In return, the plan proposes that the cost of NEP's past generation commitments be recovered from the Company and its retail affiliates through a contract termination charge. The Company would, in turn, seek to recover the payments to NEP through a wires access or transition charge to retail customers. Those commitments primarily consist of (i) generating plant commitments, (ii) regulatory assets, (iii) purchased power contracts, and (iv) the operating cost of nuclear plants which cannot be mitigated by shutting down the plants (otherwise referred to as "nuclear costs independent of operation"). The portion of these commitments incurred by NEP to serve the Company's customers is currently estimated at approximately $3 billion on a present value basis. Sunk costs associated with utility generating plants, such as past capital investments, and regulatory assets would be recovered over ten years. Purchased power contract costs and nuclear costs independent of operation would be recovered as incurred over the life of those obligations, a period expected to extend beyond ten years. Under Choice: New England, the access charge would be set at three cents per kWh for the first three years. Thereafter, the access charge would vary, but is expected to decline. The provisions of Choice: New England, including the proposed access charge, are subject to state approval and Federal Energy Regulatory Commission (FERC) approval. Choice: New England was formally filed by the Company with the Massachusetts Department of Public Utilities (MDPU) in February 1996. Three other utilities and the Massachusetts Division of Energy Resources (DOER) also filed plans with the MDPU in February 1996. The DOER's plan also calls for direct access for all customers beginning in 1998, with a pilot program beginning in 1997. On May 1, 1996, the MDPU issued a set of proposed rules and regulations governing the implementation of retail choice. The proposed rules would allow all customers of Massachusetts investor-owned utilities to choose their electric supplier beginning in 1998 and would establish a price cap system for regulating the rates of distribution service that would continue to be provided by local utilities. The MDPU proposed rules affirm the principle of stranded cost recovery for utilities over ten years, but create uncertainties concerning the extent of actual stranded cost recovery. Hearings on the proposed rules are scheduled for June and July. The MDPU has stated that it will issue final regulations in September 1996 and issue orders on the individual utility plans in 1997. Other regulatory initiatives In April 1996, the FERC issued Order No. 888 addressing open access transmission and indicated that those utilities that own transmission facilities will be required to file open access tariffs to make available transmission service to affiliates and nonaffiliates at fair non-discriminatory rates. Order No. 888 also stated that public utilities will be allowed to seek recovery of legitimate and verifiable stranded costs from departing customers as a result of wholesale competition. The FERC indicated that it will provide for the recovery of retail stranded costs only if state regulators lack the legal authority to address those costs at the time of retail wheeling is required. The FERC also stated that it would consider proposals for stranded cost recovery under wholesale requirements contracts, such as the contracts between NEP and its retail affiliates. Risk factors The major risk factors affecting the Company relate to the possibility of adverse regulatory decisions or legislation which limit the level of revenues the Company is allowed to charge for its services. The Company's all-requirements purchased power contract with NEP requires either party to give seven years notice prior to terminating the contract. Termination of the contract would create stranded costs at NEP that NEP would seek to recover from the Company pursuant to the contract. In that event, the Company would seek recovery of such stranded costs from its customers. However, there is no assurance that the final restructuring plans ordered by state regulatory bodies or state legislatures will include provisions that allow the Company to fully recover any stranded costs passed on to the Company by NEP. In such an event, the Company could be faced with a significant amount of costs being billed to it by NEP that the Company could not fully recover from retail customers, for which the Company would seek a remedy in the courts. In addition, there is no assurance that any performance incentive system, which regulators might ultimately adopt with respect to the Company's distribution activities, would allow the Company to fully recover prudently incurred costs and earn a reasonable return on investment. Historically, electric utility rates have been based on a utility's costs. As a result, electric utilities are subject to certain accounting standards that are not applicable to other business enterprises in general. Financial Accounting Standards No. 71, Accounting for the Effects of Certain Types of Regulation (FAS 71), requires regulated entities, in appropriate circumstances, to establish regulatory assets and liabilities, and thereby defer the income statement impact of certain costs that are expected to be recovered in future rates. The effects of regulatory, legislative, or utility initiatives could, in the near future, cause all or a portion of the Company's operations to cease meeting the criteria of FAS 71. In that event, the application of FAS 71 to such operations would be discontinued and a non-cash write-off of previously established regulatory assets and liabilities related to such operations would be required. At December 31, 1995, the Company had pre-tax regulatory assets (net of regulatory liabilities) of approximately $50 million. Operating Revenue ----------------- The following table summarizes the changes in operating revenue: Increase (Decrease) in Operating Revenue First Quarter ------------- 1996 vs 1995 ------------- (In Millions) Sales to ultimate customers $ 11 Rate changes 8 Purchased Power Cost Adjustment (PPCA) mechanism (2) Fuel recovery 2 Demand-side Management (DSM) (2) Other 1 --- $18 === For a discussion of sales to ultimate customers, see the Earnings section. The increase in revenues due to rate changes is the result of a $31 million base rate increase which the Company began billing in the fourth quarter of 1995. The Company's rates contain a fuel clause and a PPCA provision. These mechanisms are designed to allow the Company to pass on to its customers changes in purchased energy costs resulting from rate increases or decreases by NEP, the Company's affiliated wholesale power supplier. The PPCA mechanism is also designed to pass on to customers the effects of NEP's seasonal rates. Although the Company experienced an increase in purchased power costs in the first quarter of 1996, NEP's seasonal rates reduced the impact of this increase. The passback to customers of this benefit is reflected as a reduction in revenues under the PPCA mechanism. Operating Expenses ------------------ The following table summarizes the changes in operating expenses which are discussed below:
Increase (Decrease) in Operating Expenses First Quarter - ------------- 1996 vs 1995 - ------------- (In Millions) Purchased electric energy: Fuel costs $ 2 Other 1 Other operation and maintenance: DSM (2) Other 5 Taxes 4 --- $10 ===
The increase in other operation and maintenance expense in the first quarter reflects increased distribution system-related expenses and increased customer service expenses. Post-retirement benefit costs also increased due to the inclusion of additional amounts in rates that were previously deferred. The change in taxes in the first three months of the year is primarily due to increased income. Utility Plant Expenditures and Financings ----------------------------------------- Cash expenditures for utility plant totaled $23 million in the first three months of 1996. The funds necessary for utility plant expenditures during the period were provided by net cash from operating activities, after the payment of dividends. The Company did not issue any long-term debt during the first three months of 1996. At March 31, 1996, the Company had $46 million of short-term debt outstanding including $35 million of commercial paper borrowings. The Company currently has lines of credit with banks totaling $90 million. These lines of credit are available to provide liquidity support for commercial paper borrowings and other corporate purposes. There were no borrowings under these lines of credit at March 31, 1996. For the twelve-month period ending March 31, 1996, the ratio of earnings to fixed charges was 2.77. PART II. OTHER INFORMATION Item 1. Legal Proceedings -------------------------- Information concerning the restructuring dockets before the Massachusetts Department of Public Utilities, discussed in Part I of this report in Management's Discussion and Analysis of Financial Condition and Results of Operations, is incorporated herein by reference and made a part hereof. Item 4. Submission of Matters to a Vote of Security-Holders - ------------------------------------------------------------ On March 20, 1996, the Annual Meeting of Stockholders was held. The following actions were taken by the unanimous vote of the 2,398,111 shares having general voting rights represented at the meeting: The number of directors was fixed at eleven. The following were elected as directors of the Company: Urville J. Beaumont Joan T. Bok Sally L. Collins John H. Dickson Kalyan K. Ghosh Charles B. Housen Patricia A. McGovern John F. Reilly John W. Rowe Richard P. Sergel Roslyn M. Watson Michael E. Jesanis was elected Treasurer and Robert King Wulff was elected Clerk. Coopers & Lybrand L.L.P. was selected as auditor for 1996. Item 6. Exhibits and Reports on Form 8-K ----------------------------------------- The Company is filing the following revised exhibit for incorporation by reference into its registration statement on Form S-3, Commission File No. 33-59145. 12Statement re computation of ratios The Company is filing Financial Data Schedules. The Company filed a report on Form 8-K dated February 16, 1996, containing Item 5, Other Events. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report on Form 10-Q for the quarter ended March 31, 1996 to be signed on its behalf by the undersigned thereunto duly authorized. MASSACHUSETTS ELECTRIC COMPANY s/ Michael E. Jesanis Michael E. Jesanis, Treasurer, Authorized Officer, and Principal Financial Officer Date: May 13, 1996 EX-99 2 Exhibit Index Exhibit Index ------------- Exhibit Description Page ------- ----------- ---- 12 Statement re computation of Filed herewith ratios 27 Financial Data Schedule Filed herewith EX-12 3 Exhibit 12 MASSACHUSETTS ELECTRIC COMPANY Computation of Ratio of Earnings to Fixed Charges (SEC Coverage) (Unaudited)
12 Months Ended March 31, 1996 Years Ended December 31, Actual - ------------------------------------------------------------- (Unaudited) 1995 1994 1993 1992 1991 -------------- ---- ---- ---- ---- ---- (In Thousands) Net Income $34,709 $29,101 $34,726 $23,779 $34,905 $25,243 - ---------- Add income taxes and fixed charges - ---------------------------------- Current federal income taxes 16,586 9,437 (6,762) 5,606 3,977 8,568 Deferred federal income taxes 1,998 6,156 24,932 3,430 13,451 3,889 Investment tax credits - net (1,128) (1,132) (1,228) (1,228) (1,228) (1,194) Massachusetts franchise tax 4,595 3,935 4,681 3,348 3,858 2,920 Interest on long-term debt 26,521 25,901 20,967 23,403 21,910 20,157 Interest on short-term debt and other5,530 6,784 6,366 3,638 3,657 3,643 ------- ------- - ------- ------- ------- ------- Net earnings available for fixed charges $88,811 $80,182 $83,682 $61,976 $80,530 $63,226 ------- ------- - ------- ------- ------- ------- Fixed charges: Interest on long-term debt $26,521 $25,901 $20,967 $23,403 $21,910 $20,157 Interest on short-term debt and other5,530 6,784 6,366 3,638 3,657 3,643 ------- ------- - ------- ------- ------- ------- Total fixed charges $32,051 $32,685 $27,333 $27,041 $25,567 $23,800 ======= ======= ======= ======= ======= ======= Ratio of earnings to fixed charges 2.77 2.45 3.06 2.29 3.15 2.66 - ----------------------------------
EX-27 4
UT THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE SHEET AND RELATED STATEMENTS OF INCOME, RETAINED EARNINGS AND CASH FLOWS OF MASSACHUSETTS ELECTRIC COMPANY IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 DEC-31-1996 DEC-31-1995 MAR-31-1996 MAR-31-1995 3-MOS 3-MOS PER-BOOK PER-BOOK 1,052,387 0 0 0 239,974 0 63,160 0 0 0 1,355,521 0 59,953 0 201,172 0 150,671 0 411,796 0 0 0 50,000 0 353,312 0 46,475 0 0 0 0 0 0 0 0 0 0 0 0 0 493,938 0 1,355,521 0 390,819 373,092 6,711 3,043 363,421 356,700 370,132 359,743 20,687 13,349 (2,037) 326 18,650 13,675 7,916 8,549 10,734 5,126 779 778 9,955 4,348 9,592 5,995 6,725 6,105 33,278 9,896 0 0 0 0 Total deferred charges includes other assets. Short-term notes includes commercial paper obligations and notes payable to associated companies. Per share data is not relevant because the Company's common stock is wholly-owned by New England Electric System. -----END PRIVACY-ENHANCED MESSAGE-----