-----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, O1Ztnh6zuhGpzMWXitKx/adyHcI+rkawMPZLPgTkSIAE62IXvu9DF0zxTUJXmFaZ PtmJEjZjnPdOG9SKkYaw+A== 0000063073-98-000012.txt : 19980810 0000063073-98-000012.hdr.sgml : 19980810 ACCESSION NUMBER: 0000063073-98-000012 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 19980630 FILED AS OF DATE: 19980807 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: SEC FILE NUMBER: 000-05464 FILM NUMBER: 98679690 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 June 30, 1998 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 June 30, 1998. PART I FINANCIAL INFORMATION Item 1. Financial Statements - ---------------------------- MASSACHUSETTS ELECTRIC COMPANY Statements of Income Periods Ended June 30 (Unaudited)
Quarter Six Months -------- ---------- 1998 1997 1998 1997 ---- ---- ---- ---- (In Thousands) Operating revenue $361,889 $369,542 $758,603 $775,060 -------- -------- -------- -------- Operating expenses: Purchased electric energy, principally from New England Power Company, an affiliate 227,683 264,492 511,265 559,692 Other operation 76,216 49,534 126,998 98,080 Maintenance 8,596 8,880 17,348 16,304 Depreciation 16,441 12,438 30,694 25,076 Taxes, other than income taxes 7,989 8,041 16,938 16,914 Income taxes 6,476 6,460 14,029 15,056 -------- -------- -------- -------- Total operating expenses 343,401 349,845 717,272 731,122 -------- -------- -------- -------- Operating income 18,488 19,697 41,331 43,938 Other income (expense), net (449) (211) (3,327) (2,107) -------- -------- -------- -------- Operating and other income 18,039 19,486 38,004 41,831 -------- -------- -------- -------- Interest: Interest on long-term debt 6,670 7,004 13,541 14,087 Other interest 1,912 2,229 3,331 3,971 Allowance for borrowed funds used during construction - credit (155) (100) (291) (216) -------- -------- -------- -------- Total interest 8,427 9,133 16,581 17,842 -------- -------- -------- -------- Net income $ 9,612 $ 10,353 $ 21,423 $ 23,989 ======== ======== ======== ======== Statements of Retained Earnings Retained earnings at beginning of period $197,139 $166,803 $201,156 $165,936 Net income 9,612 10,353 21,423 23,989 Dividends declared on cumulative preferred stock (240) (779) (480) (1,557) Dividends declared on common stock (9,593) (4,796) (25,181) (16,787) -------- -------- -------- -------- Retained earnings at end of period $196,918 $171,581 $196,918 $171,581 ======== ======== ======== ======== 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 Statements of Income Twelve Months Ended June 30 (Unaudited)
1998 1997 ---- ---- (In Thousands) Operating revenue $1,607,628 $1,564,299 ---------- ---------- Operating expenses: Purchased electric energy, principally from New England Power Company, an affiliate 1,096,620 1,131,008 Other operation 246,068 210,141 Maintenance 37,950 32,109 Depreciation 55,312 48,358 Taxes, other than income taxes 31,167 30,990 Income taxes 41,427 30,264 ---------- ---------- Total operating expenses 1,508,544 1,482,870 ---------- ---------- Operating income 99,084 81,429 Other income (expense), net (2,756) (1,243) ---------- ---------- Operating and other income 96,328 80,186 ---------- ---------- Interest: Interest on long-term debt 27,066 27,715 Other interest 6,574 7,238 Allowance for borrowed funds used during construction - credit (504) (492) ---------- ---------- Total interest 33,136 34,461 ---------- ---------- Net income $ 63,192 $ 45,725 ========== ========== Statements of Retained Earnings Retained earnings at beginning of period $ 171,581 $ 154,150 Net income 63,192 45,725 Dividends declared on cumulative preferred stock (1,744) (3,114) Dividends declared on common stock (32,375) (25,180) Premium on redemption of preferred stock (3,736) - ---------- ---------- Retained earnings at end of period $ 196,918 $ 171,581 ========== ========== 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)
June 30, December 31, ASSETS 1998 1997 ------ ---- ---- (In Thousands) Utility plant, at original cost $1,606,290 $1,579,309 Less accumulated provisions for depreciation 484,722 465,796 ---------- ---------- 1,121,568 1,113,513 Construction work in progress 17,756 13,363 ---------- ---------- Net utility plant 1,139,324 1,126,876 ---------- ---------- Current assets: Cash 5,283 6,743 Accounts receivable: From sales and deliveries of electric energy 171,523 158,627 Other (including $4,474,000 and $1,321,000 from affiliates) 5,184 2,112 Less reserves for doubtful accounts 14,289 12,808 ---------- ---------- 162,418 147,931 Unbilled revenues 54,175 49,513 Materials and supplies, at average cost 9,336 9,599 Prepaid and other current assets 17,085 22,255 ---------- ---------- Total current assets 248,297 236,041 ---------- ---------- Deferred charges and other assets 43,444 45,450 ---------- ---------- $1,431,065 $1,408,367 ========== ========== 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 45,945 45,945 Other paid-in capital 193,469 193,224 Retained earnings 196,918 201,156 Unrealized gain on securities, net 209 129 ---------- ---------- Total common equity 496,494 500,407 Cumulative preferred stock 15,739 15,739 Long-term debt 343,398 338,387 ---------- ---------- Total capitalization 855,631 854,533 ---------- ---------- Current liabilities: Long-term debt due in one year 10,000 20,000 Short-term debt (including $11,725,000 and $4,800,000 to affiliates) 35,475 34,700 Accounts payable (including $179,853,000 and $179,211,000 to affiliates) 213,634 195,023 Accrued liabilities: Taxes 3,851 8,275 Interest 8,362 9,183 Other accrued expenses 30,377 22,081 Customer deposits 4,562 4,487 Dividends payable 9,832 5,036 ---------- ---------- Total current liabilities 316,093 298,785 ---------- ---------- Deferred federal and state income taxes 182,498 179,474 Unamortized investment tax credits 14,920 15,463 Other reserves and deferred credits 61,923 60,112 ---------- ---------- $1,431,065 $1,408,367 ========== ========== The accompanying notes are an integral part of these financial statements.
MASSACHUSETTS ELECTRIC COMPANY Statements of Cash Flows Six Months Ended June 30 (Unaudited)
1998 1997 ---- ---- (In Thousands) Operating Activities: Net income $ 21,423 $ 23,989 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 30,694 25,076 Deferred income taxes and investment tax credits, net 3,121 (7,710) Allowance for funds used during construction (291) (216) Decrease (increase) in accounts receivable, net and unbilled revenues (19,149) 18,426 Decrease (increase) in materials and supplies 263 (211) Decrease (increase) in prepaid and other current assets5,170 (548) Increase (decrease) in accounts payable 18,611 (3,461) Increase (decrease) in other current liabilities 3,126 24,157 Other, net 5,451 13,036 -------- -------- Net cash provided by operating activities $ 68,419 $ 92,538 -------- -------- Investing Activities: Plant expenditures, excluding allowance for funds used during construction $(42,919) $(44,007) Other investing activities (2,115) (332) -------- -------- Net cash used in investing activities $(45,034) $(44,339) -------- -------- Financing Activities: Capital contributions from parent $ 245 $ - Dividends paid on common stock (20,385) (19,185) Dividends paid on preferred stock (480) (1,557) Changes in short-term debt 775 (13,650) Long-term debt - issues 25,000 - Long-term debt - retirements (30,000) (15,000) -------- -------- Net cash used in financing activities $(24,845) $(49,392) -------- -------- Net decrease in cash and cash equivalents $ (1,460) $ (1,193) Cash and cash equivalents at beginning of period 6,743 2,356 -------- -------- Cash and cash equivalents at end of period $ 5,283 $ 1,163 ======== ======== 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. Massachusetts Electric Company (the Company) currently has in place an internal environmental audit program and an external waste disposal vendor audit and qualification program 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 United States Environmental Protection Agency or the Massachusetts Department of Environmental Protection for 16 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. (Until the early 1970s, New England Electric System (NEES) was a combined electric and gas holding company system.) The Company is aware of approximately 35 such manufactured gas locations in Massachusetts. The Company has been identified as a PRP at eight of these manufactured gas locations, which are included in the 16 PRP sites discussed above. The Company is engaged in various phases of investigation and remediation work at 17 of the manufactured gas locations. The Company is currently aware of other possible hazardous waste 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 settlement agreement regarding the rate recovery of remediation costs of former manufactured gas sites and certain other hazardous waste sites located in Massachusetts. Under that agreement, qualified remedial costs related to these sites are paid out of a special fund established on the Company's books. The Company made an initial $30 million contribution to the fund. Rate-recoverable contributions of $3 million, adjusted since 1993 for inflation, are added annually to the fund along with interest and any recoveries from insurance carriers and other third parties. At June 30, 1998, the fund had a balance of $47 million. 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. The NEES companies have recovered amounts from certain insurers and other third parties, and, where appropriate, the Company intends to seek recovery from other insurers and from other PRPs, but it is uncertain whether, and to what extent, such efforts will be successful. At June 30, 1998, the Company had total reserves for environmental response costs of $48 million. This represents an increase from the $35 million balance at the end of 1997. Since all of the sites for which increased reserves were recognized are covered by rate agreements, this increase in the reserves did not have an adverse effect on net income. 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 - Comprehensive Income - ----------------------------- In the first quarter of 1998, the Company adopted Statement of Financial Accounting Standards No. 130, Reporting Comprehensive Income (FAS 130). FAS 130 establishes standards for reporting comprehensive income and its components. Comprehensive income for the period is equal to net income plus "other comprehensive income," which, for the Company, consists of the change in unrealized holding gains on available-for-sale securities during the period. Other comprehensive income was immaterial for the Company for the quarters and six month periods ended June 30, 1998 and 1997, respectively. Note C - New Accounting Standards - --------------------------------- In 1997, the Financial Accounting Standards Board (FASB) released Statement of Financial Accounting Standards No. 131, Disclosure about Segments of an Enterprise and Related Information (FAS 131), which goes into effect in 1998. FAS 131 requires the reporting in financial statements of certain new additional information about operating segments of a business. Application of FAS 131 is not required for interim reporting in the initial year of application. The Company is currently evaluating the impact that FAS 131 will have on its future reporting requirements. In February 1998, the FASB issued Statement of Financial Accounting Standards No. 132, Employers' Disclosures about Pensions and Other Postretirement Benefits (FAS 132), which revises disclosure requirements for pension and other postretirement benefits. The Company will adopt FAS 132 in its financial statements for the year ending December 31, 1998. The adoption of FAS 131 and FAS 132 will have no impact on the Company's operating results, financial position, or cash flows. In June 1998, the FASB issued Statement of Financial Accounting Standards No. 133, Accounting for Derivative Instruments and Hedging Activities (FAS 133), which establishes accounting and reporting standards for such items. FAS 133 is effective for fiscal years beginning after June 15, 1999. Currently, the Company has no such derivative holdings. Note D - ------ 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 1997 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 (the Company) 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 1997 Annual Report on Form 10-K. Earnings - -------- Net income for the second quarter and first six months of 1998 decreased by $0.7 million and $2.6 million, respectively, as compared to the corresponding periods in 1997. Although the Company implemented a rate increase in March 1998, this increase was offset by revenue reductions related to the recovery of purchased power and transmission costs greater than the reductions in the related costs. These revenue reductions reflect the implementation of fully reconciling purchased power and transmission cost rate mechanisms in 1998 as well as a retroactive purchased power billing adjustment from New England Power Company (NEP) in the first quarter of 1998. The year-to-date decrease also reflects a reduction in kilowatthour (kWh) deliveries. This report contains statements that may be considered forward looking as defined under the securities laws. Actual results may differ materially for reasons discussed in the "Industry Restructuring" sections of the Company's Form 10-K for 1997 and the Company's 1997 Annual Report. Industry Restructuring - ---------------------- For a full discussion of industry restructuring activities in Massachusetts, Rhode Island, and New Hampshire, stranded cost recovery, the New England Electric System (NEES) companies' proposed divestiture of its nonnuclear generating business, accounting implications of industry restructuring and divestiture, workforce reductions, and the impact of industry restructuring on the distribution business, see the "Industry Restructuring" section in the Company's Form 10-K for 1997 and the Company's 1997 Annual Report. Divestiture of Generating Business NEES has received all state and federal regulatory approvals required for the sale of its nonnuclear generating business to USGen New England, Inc. (USGen). USGen is awaiting final Federal Energy Regulatory Commission (FERC) approval for exempt wholesale generator status for the facilities it is purchasing. The proposed sale is more fully described in the Company's Form 10-K for 1997 and the Company's 1997 Annual Report. Closing of the sale is expected in the third quarter of 1998. Risk Factors While the Company believes that the industry restructuring settlement and the sale agreement with USGen and other developments constitute substantial progress in reducing the impacts associated with industry restructuring, significant risks remain. These include, but are not limited to: (i) the potential that ultimately the Massachusetts Settlement will not be implemented in the manner anticipated by the Company, (ii) the possibility that a voter referendum in November 1998 could overturn the Massachusetts legislation, followed by materially adverse legislative or regulatory actions, (iii) the possibility of federal legislation that would increase the risk to investors above those contained in the Massachusetts Settlement and statute, and (iv) the failure of NEP and The Narragansett Electric Company to complete the sale of the nonnuclear generating business to USGen. The major factors affecting the Company relate to the possibility of adverse regulatory or judicial decisions or legislation which limit the level of revenues the Company is allowed to charge for its services or affect the costs the Company incurs. Year 2000 Computer Issues - ------------------------- For a full discussion of the Company's Year 2000 computer issues, including a description of the modification process, timeline, and estimated total costs, refer to the "Financial Review" section of the Company's 1997 Annual Report, filed in conjunction with the Company's Form 10-K for 1997. Operating Revenue - ----------------- The following table summarizes the changes in operating revenue: Increase (Decrease) in Operating Revenue Second Quarter Six Months -------------- ------------ 1998 vs 1997 1998 vs 1997 -------------- ------------ (In Millions) Purchased power and transmission-related $(22) $(38) 1997 Purchased power cost adjustment (PPCA) mechanism 4 10 Distribution rate increase 11 15 Deliveries to ultimate customers and other - (3) ---- ---- $ (7) $(16) ==== ==== Historically, the Company purchased all of its electrical requirements from NEP under the provisions of an all-requirements contract at NEP's standard resale rate. Effective March 1, 1998, the contract was amended, terminating the all-requirements provision of the contract. The Company's customers also gained the right to choose their power supplier. NEP continues to supply power to the Company, at new lower rates, for customers who choose to continue to take power from the Company. All customers pay rates that include contract termination charges due NEP for its generation-related stranded costs. Commencing in March 1998, the revenues that the Company is billing to its customers related to NEP's costs are all subject to true-up mechanisms based on NEP's actual billings. Prior to March, only the fuel component of purchased power expense was subject to a similar fully reconciling true-up mechanism. The remainder of purchased power expense had previously been subject to a partial PPCA true-up mechanism. The Massachusetts Settlement provided for the end of the Company's PPCA mechanism in 1996. Prior to FERC approval, which occurred in the fourth quarter of 1997, PPCA refund provisions continued to be accrued. In the second quarter and first six months of 1997, approximately $4 million and $10 million, respectively, of such refund provisions were accrued, and were subsequently reversed in the fourth quarter of 1997. In March 1998, the Company also put into effect a $45 million rate increase. This increase reflects changes to the distribution cost of service that include an $11 million increase in annual depreciation expense, a $3 million annual contribution to a storm fund, and increased amortization of unfunded deferred income taxes of approximately $1 million per year over six years. The year-to-date decrease in revenues related to kWh deliveries to ultimate customers reflects a decrease of 0.8 percent in kWh deliveries, primarily due to milder winter weather in the first quarter of 1998 as compared to the corresponding period in 1997. Operating Expenses - ------------------ The following table summarizes the changes in operating expenses: Increase (Decrease) in Operating Expenses Second Quarter Six Months -------------- ------------ 1998 vs 1997 1998 vs 1997 -------------- ------------ (In Millions) Purchased power and operation and maintenance: Purchased power and transmission costs $(14) $(20) Other 3 1 Depreciation 4 6 Taxes - (1) ---- ---- $ (6) $(14) ==== ==== As noted above, effective March 1, 1998, NEP's billings to the Company were significantly changed in connection with the restructuring of the electric utility industry in Massachusetts. Not only were NEP's rates reduced but the transmission portion of NEP's costs are now billed separately and recorded in operation and maintenance expense instead of as a component of purchased power expense. Partially offsetting these decreases in expense was a retroactive billing by NEP in February 1998 related to certain meter reading corrections which increased purchased power expense by approximately $2 million. The increase in other operation and maintenance expense primarily reflects increased distribution-related and general and administrative expenses, partially offset by lower charges to postretirement benefits other than pensions expense. The increase in depreciation expense primarily reflects a portion of the $11 million increase in annual depreciation expense provided for in the Massachusetts industry restructuring settlement, and depreciation expense on new utility plant expenditures. Utility Plant Expenditures and Financing - ---------------------------------------- Cash expenditures for utility plant totaled $43 million for the first six months of 1998. The funds necessary for utility plant expenditures during the period were primarily provided by net cash from operating activities, after the payment of dividends. In the first six months of 1998, the Company issued $25 million of long-term debt, retired $30 million of mortgage bonds and increased its short-term debt outstanding by $1 million. The Company plans to issue an additional $30 million of long-term debt by the end of 1998 to refinance maturing bonds and to fund capital expenditures. At June 30, 1998, the Company had $35 million of short-term debt outstanding, including $24 million of commercial paper borrowings. At June 30, 1998, the Company had lines of credit with banks totaling $65 million which are available to provide liquidity support and for other corporate purposes. There were no borrowings under these lines of credit at June 30, 1998. For the twelve-month period ended June 30, 1998, the ratio of earnings to fixed charges was 4.08. PART II. OTHER INFORMATION 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. 12 Statement re computation of ratios The Company is filing Financial Data Schedules. 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 June 30, 1998 to be signed on its behalf by the undersigned thereunto duly authorized. MASSACHUSETTS ELECTRIC COMPANY s/John G. Cochrane John G. Cochrane, Treasurer, Authorized Officer, and Principal Financial Officer Date: August 7, 1998 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 STATEMENT RE COMPUTATION OF RATIOS MASSACHUSETTS ELECTRIC COMPANY Computation of Ratio of Earnings to Fixed Charges (SEC Coverage) (Unaudited)
12 Months Ended June 30, 1998 Years Ended December 31, Actual ---------------------------------------------------------------- (Unaudited) 1997 1996 1995 1994 1993 -------------- ---- ---- ---- ---- ---- (In Thousands) Net Income $ 63,192 $ 65,758 $37,926 $29,101 $34,726 $23,779 - ---------- Add income taxes and fixed charges - ---------------------------------- Current federal income taxes 24,327 34,244 25,867 9,437 (6,762) 5,606 Deferred federal income taxes 9,773 912 (6,052) 6,156 24,932 3,430 Investment tax credits - net (1,095) (1,103) (1,118) (1,132) (1,228) (1,228) Massachusetts franchise tax 7,566 7,514 4,479 3,935 4,681 3,348 Interest on long-term debt 27,066 27,612 27,089 25,901 20,967 23,403 Interest on short-term debt and other6,574 7,214 6,473 6,784 6,366 3,638 -------- -------- ------- ------- ------- ------- Net earnings available for fixed charges $137,403 $142,151 $94,664 $80,182 $83,682 $61,976 -------- -------- ------- ------- ------- ------- Fixed charges: Interest on long-term debt $ 27,066 $ 27,612 $27,089 $25,901 $20,967 $23,403 Interest on short-term debt and other6,574 7,214 6,473 6,784 6,366 3,638 -------- -------- ------- ------- ------- ------- Total fixed charges $ 33,640 $ 34,826 $33,562 $32,685 $27,333 $27,041 ======== ======== ======= ======= ======= ======= Ratio of earnings to fixed charges 4.08 4.08 2.82 2.45 3.06 2.29 - ----------------------------------
EX-27 4 FINANCIAL DATA SCHEDULE
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-31-1998 JUN-30-1999 6-MOS PER-BOOK 1,139,324 0 248,297 43,444 0 1,431,065 59,953 239,414 196,918 496,494 0 15,739 343,398 11,725 0 23,750 10,000 0 0 0 529,959 1,431,065 758,603 14,029 703,243 717,272 41,331 (3,327) 38,004 16,581 21,423 480 20,943 25,181 13,541 68,419 0 0 Total deferred charges includes other assets. Per share data is not relevant because the Company's common stock is wholly-owned by New England Electric System. Total common stockholders equity includes the unrealized gain on securities. -----END PRIVACY-ENHANCED MESSAGE-----