-----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, JWgVTR+h2o+48bQLhQdVao+4tMiIq/TJoVYWjCzQUVonUywM+1iniG1HSq8beIkE FS7OHwLR6yZB0Qck5yPnYQ== 0000069659-96-000009.txt : 19961113 0000069659-96-000009.hdr.sgml : 19961113 ACCESSION NUMBER: 0000069659-96-000009 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 19960930 FILED AS OF DATE: 19961108 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: NARRAGANSETT ELECTRIC CO CENTRAL INDEX KEY: 0000069659 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 050187805 STATE OF INCORPORATION: RI FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-07471 FILM NUMBER: 96657695 BUSINESS ADDRESS: STREET 1: 280 MELROSE ST CITY: PROVIDENCE STATE: RI ZIP: 02901 BUSINESS PHONE: 4019411400 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 September 30, 1996 OR ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 1-7471 (LOGO) THE NARRAGANSETT ELECTRIC COMPANY (Exact name of registrant as specified in charter) Rhode Island 05-0187805 (State or other (I.R.S. Employer jurisdiction of Identification No.) incorporation or organization) 280 Melrose Street, Providence, R.I. 02901 (Address of principal executive offices) Registrant's telephone number, including area code (401-784-7000) 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 $50 per share, authorized and outstanding: 1,132,487 shares at September 30, 1996. PART I FINANCIAL STATEMENTS Item 1. Financial Statements - ---------------------------- THE NARRAGANSETT ELECTRIC COMPANY Statements of Income Periods Ended September 30 (Unaudited)
Quarter Nine Months ------- ----------- 1996 1995 1996 1995 ---- ---- ---- ---- (In Thousands) Operating revenue $140,481 $139,217 $384,236 $380,663 -------- -------- -------- -------- Operating expenses: Fuel for generation and purchased electric energy, (principally from New England Power Company, an affiliate) 83,693 83,022 226,161 227,536 Other operation 18,577 19,646 53,836 53,565 Maintenance 3,062 2,638 10,016 7,690 Depreciation 7,350 8,049 21,707 23,062 Taxes, other than federal income taxes 10,395 9,044 30,448 27,930 Federal income taxes 3,985 4,119 8,118 8,235 -------- -------- -------- -------- Total operating expenses 127,062 126,518 350,286 348,018 -------- -------- -------- -------- Operating income 13,419 12,699 33,950 32,645 Other income: Allowance for equity funds used during construction (175) 253 Other income (expense), net (143) (94) (1,377) (560) -------- -------- -------- -------- Operating and other income 13,276 12,430 32,573 32,338 -------- -------- -------- -------- Interest: Interest on long-term debt 4,303 4,242 12,899 12,312 Other interest 785 1,023 2,299 2,685 Allowance for borrowed funds used during construction - credit 19 (774) (201) (1,422) -------- -------- -------- -------- Total interest 5,107 4,491 14,997 13,575 -------- -------- -------- -------- Net income $ 8,169 $ 7,939 $ 17,576 $ 18,763 ======== ======== ======== ======== Statements of Retained Earnings Retained earnings at beginning of period $111,183 $ 97,345 $108,227 $ 91,556 Net income 8,169 7,939 17,576 18,763 Dividends declared on cumulative preferred stock (536) (535) (1,608) (1,607) Dividends declared on common stock (1,416) (567) (6,795) (4,530) -------- -------- -------- -------- Retained earnings at end of period $117,400 $104,182 $117,400 $104,182 ======== ======== ======== ======== 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.
THE NARRAGANSETT ELECTRIC COMPANY Statements of Income Twelve Months Ended September 30 (Unaudited)
1996 1995 ---- ---- (In Thousands) Operating revenue $502,686 $496,057 -------- -------- Operating expenses: Fuel for generation and purchased electric energy, (principally from New England Power Company, an affiliate) 293,277 299,783 Other operation 72,085 74,188 Maintenance 13,500 10,632 Depreciation 30,178 27,895 Taxes, other than federal income taxes 39,145 36,334 Federal income taxes 10,771 8,524 -------- -------- Total operating expenses 458,956 457,356 -------- -------- Operating income 43,730 38,701 Other income: Allowance for equity funds used during construction (147) 320 Other income (expense), net (1,009) (170) -------- -------- Operating and other income 42,574 38,851 -------- -------- Interest: Interest on long-term debt 17,214 16,157 Other interest 3,277 3,669 Allowance for borrowed funds used during construction - credit (640) (1,796) -------- -------- Total interest 19,851 18,030 -------- -------- Net income $ 22,723 $ 20,821 ======== ======== Statements of Retained Earnings Retained earnings at beginning of period $104,182 $ 90,318 Net income 22,723 20,821 Dividends declared on cumulative preferred stock (2,144) (2,143) Dividends declared on common stock (7,361) (4,814) -------- -------- Retained earnings at end of period $117,400 $104,182 ======== ======== 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.
THE NARRAGANSETT ELECTRIC COMPANY Balance Sheets (Unaudited)
September 30, December 31, ASSETS 1996 1995 ------ ---- ---- (In Thousands) Utility plant, at original cost $729,903 $699,906 Less accumulated provisions for depreciation 182,498 173,391 -------- -------- 547,405 526,515 Construction work in progress 8,446 8,733 -------- -------- Net utility plant 555,851 535,248 -------- -------- Current assets: Cash 1,347 1,999 Accounts receivable: From sales of electric energy 55,731 59,760 Other (including $6,199,000 and $1,464,000 13,607 9,330 from affiliates) Less reserves for doubtful accounts 6,095 5,516 -------- -------- 63,243 63,574 Unbilled revenues 15,200 16,500 Fuel, materials and supplies, at average cost 5,065 6,245 Prepaid and other current assets 22,593 15,887 -------- -------- Total current assets 107,448 104,205 -------- -------- Deferred charges and other assets 60,685 60,168 -------- -------- $723,984 $699,621 ======== ======== CAPITALIZATION AND LIABILITIES ------------------------------ Capitalization: Common stock, par value $50 per share, authorized and outstanding 1,132,487 shares $ 56,624 $ 56,624 Premiums on preferred stocks 170 170 Other paid-in capital 80,000 80,000 Retained earnings 117,400 108,227 -------- -------- Total common equity 254,194 245,021 Cumulative preferred stock 36,500 36,500 Long-term debt 178,488 210,892 -------- -------- Total capitalization 469,182 492,413 -------- -------- Current liabilities: Long-term debt due in one year 32,500 Short-term debt (including $7,250,000 and $1,000,000 to affiliates) 24,925 22,675 Accounts payable (including $52,431,000 and $38,510,000 to affiliates) 58,239 46,247 Accrued liabilities: Taxes 4,240 6,380 Interest 3,457 5,847 Other accrued expenses 20,900 19,558 Customer deposits 5,581 5,691 Dividends payable 1,951 1,102 -------- -------- Total current liabilities 151,793 107,500 -------- -------- Deferred federal income taxes 79,875 76,017 Unamortized investment tax credits 7,642 8,016 Other reserves and deferred credits 15,492 15,675 -------- -------- $723,984 $699,621 ======== ======== The accompanying notes are an integral part of these financial statements.
THE NARRAGANSETT ELECTRIC COMPANY Statements of Cash Flows Nine Months Ended September 30 (Unaudited)
1996 1995 ---- ---- (In Thousands) Operating Activities: Net income $ 17,576 $ 18,763 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 21,707 23,062 Deferred federal income taxes and investment tax credit, net 2,409 4,635 Allowance for funds used during construction (201) (1,675) Amortization of unbilled revenues (6,156) Decrease (increase) in accounts receivable, net and unbilled revenues 1,631 (5,339) Decrease (increase) in fuel, materials, and supplies 1,180 (641) Decrease (increase) in prepaid and other current assets (6,706) (1,922) Increase (decrease) in accounts payable 11,992 (5,042) Increase (decrease) in other current liabilities (3,298) 1,452 Other, net 834 6,632 -------- -------- Net cash provided by operating activities $ 47,124 $ 33,769 -------- -------- Investing Activities: Plant expenditures, excluding allowance for funds used during construction $(42,114) $(53,461) Other investing activities (98) -------- -------- Net cash used in investing activities $(42,212) $(53,461) -------- -------- Financing Activities: Capital contributions from parent $ 10,000 Dividends paid on common stock $ (5,946) (4,247) Dividends paid on preferred stock (1,608) (1,607) Long-term debt - issues 2,000 15,000 Long-term debt - retirements (2,000) Changes in short-term debt 2,250 1,250 Premium on reacquisition of long-term debt (260) -------- -------- Net cash provided by (used in) financing activities$ (5,564) $ 20,396 -------- -------- Net increase (decrease) in cash and cash equivalents $ (652) $ 704 Cash and cash equivalents at beginning of period 1,999 713 -------- -------- Cash and cash equivalents at end of period $ 1,347 $ 1,417 ======== ======== The accompanying notes are an integral part of these financial statements.
Note A - ------ A 1986 Rhode Island Supreme Court decision held that the Rhode Island Public Utilities Commission's (RIPUC) rate-making powers include the authority to order refunds of amounts earned in excess of an allowed return. As a result, the RIPUC monitors the Company's earnings on a regular basis. Note B - 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. 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 (NEES) subsidiaries currently have 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 U.S. Environmental Protection Agency or the Massachusetts Department of Environmental Protection for three sites (two of which are located in Massachusetts) at which hazardous waste is alleged to have been disposed. 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. Gas was manufactured from coal in Rhode Island in the past. The Company is aware of five sites on which gas was manufactured or manufactured gas was stored that were owned either by the Company or by its predecessor companies. It is not known to what extent the Company would be held liable for hazardous wastes, if any, left at these manufactured gas locations. 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 Note B - Hazardous Waste - Continued - ------------------------ waste site that may ultimately be borne by the Company. A preliminary review by a consultant hired by the NEES companies of the potential cost of investigating and, if necessary, remediating Rhode Island manufactured gas sites resulted in costs per site ranging from less than $1 million to $11 million. An informal survey of other utilities conducted on behalf of NEES and its subsidiaries indicated costs in a similar range. 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. The Company believes that hazardous waste liabilities for all sites of which it is aware are not material to its financial position. 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 The Narragansett 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. This section contains forward-looking statements as defined under the securities laws. Actual results could differ materially from those projected. This section, particularly under "Competitive Conditions - Risk Factors", lists some of the reasons why results could differ materially from those projected. Earnings - -------- Net income for the third quarter of 1996 was relatively unchanged from the corresponding period in 1995, but earnings for the first nine months of 1996 decreased $1.2 million. This decrease reflects (i) the completion of the recognition of $14 million of unbilled revenues over a 21-month period that ended in December 1995, (ii) increased distribution system-related expenses, (iii) increased taxes, other than income taxes, and (iv) decreased allowance for funds used during construction. Partially offsetting these decreases to income for the nine-month period are a base rate increase and a 0.7 percent increase in kilowatt-hour (kWh) sales reflecting an improving regional economy. KWh sales to ultimate customers for the third quarter decreased 1.6 percent reflecting a cooler summer in 1996. 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 Rhode Island, 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"). In these competitive circumstances, utilities across the country that operate generation plants, such as New England Power Company (NEP), the Company's affiliated wholesale power supplier, face the risk that market prices may not be sufficient to recover the costs of the commitments incurred to supply customers under a regulated industry structure. The amount by which costs exceed market prices is commonly referred to as "stranded costs". Rhode Island Legislation On August 7, 1996, the Governor of Rhode Island signed into law legislation that will restructure the electric utility industry in Rhode Island. Rhode Island is the first state to pass comprehensive legislation providing retail customers with access to alternative suppliers and providing utilities with recovery of their stranded investments. The NEES companies supported this legislation which affects NEP and the Company. The legislation allows all customers of electric utilities to choose their power supplier under a phased-in approach, while transmission and distribution rates will remain regulated. This phase-in will begin on July 1, 1997 for customers representing approximately 10 percent of the Company's load, followed by another 10 percent on January 1, 1998, and the balance of customers on July 1, 1998. All Rhode Island customers would have choice of supplier beginning January 1, 1998 if retail access is available to 40 percent or more of the kWh sales in New England by that date. Rhode Island customers will likely receive substantial savings in a competitive market, which will therefore result in revenue losses for the Company. Under the new law, NEP's wholesale contract with the Company will be terminated. In return, the cost of NEP's past generation commitments to serve the Company's customers (estimated at approximately $1 billion) will be recovered through a transition access charge on retail distribution rates. Those commitments consist of (i) generating plant commitments, (ii) regulatory assets, (iii) the above-market component of purchased power contracts, and (iv) the operating cost of nuclear plants which cannot be mitigated by shutting down the plants, including nuclear decommissioning. Sunk costs associated with generating plants and regulatory assets would be recovered over a period of 12 years. The above- market component of purchased power contracts and nuclear decommissioning costs would be recovered as incurred over the life of those obligations, a period expected to extend beyond 12 years. The transition access charge would be reduced to reflect the net proceeds from the sale of the NEES companies' generating assets. The initial transition access charge, before the application of those proceeds, would be set at 2.8 cents per kWh through December 31, 2000, and is expected to decline thereafter. The legislation requires the Company to file by January 1, 1997 a plan with the Rhode Island Public Utilities Commission (RIPUC) to transfer its generating and transmission assets at book value to affiliated companies. A settlement agreement pending approval before the Massachusetts Department of Public Utilities would require the full divestiture of the NEES companies' generating business to a nonaffiliated entity. The legislation also establishes performance-based rates for distribution utilities, such as the Company. Under the legislation, the Company will be entitled to increase its distribution rates by approximately $10 million in 1997 and another $10 million in 1998. In addition, in 1996 and 1997, the Company's return on equity from distribution operations will be subject to a floor of 6 percent and a ceiling of 11 percent. Earnings over the ceiling will be shared equally between customers and shareholders up to an absolute cap on return on equity from distribution operations of 12.5 percent. To the extent that earnings fall below the floor, the Company will be authorized to surcharge customers for the shortfall. Implementation of various aspects of the Rhode Island legislation is subject to RIPUC and Federal Energy Regulatory Commission (FERC) approval. Additional governmental approvals would be required for divestiture of the generating business. FERC Order In April 1996, the FERC issued Order No. 888 addressing open access transmission and required those utilities that own transmission facilities 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 retail wheeling is required. The FERC also stated that it would permit stranded cost recovery under wholesale requirements contracts, such as the contracts between NEP and its retail affiliates. Accounting Implications 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 Company believes that, if approved by regulators, the Rhode Island legislation would meet the criteria for continued application of FAS 71. As a result, no write-off of existing regulatory assets is expected. Risk factors For a discussion of risk factors in the event that the Rhode Island legislation is not implemented see "Risk Factors" in the Company's Form 10-Q for the quarter ended June 30, 1996. Operating Revenue - ----------------- The following table summarizes the changes in operating revenue: Increase (Decrease) in Operating Revenue Third Quarter Nine Months ------------- ----------- 1996 vs 1995 1996 vs 1995 ------------- ------------ (In Millions) Sales to ultimate customers $(3) $ 2 Rate changes 3 9 Fuel recovery 2 - Unbilled revenues recognized under rate agreement (2) (6) Rate adjustment mechanisms (1) (3) Demand side management (DSM) 1 1 Other 1 1 --- --- $ 1 $ 4 === === For a discussion of sales to ultimate customers, see the "Earnings" section. The increase in revenues due to rate changes reflects a $12 million increase in base rates, approved by the RIPUC and effective December 1, 1995. The decrease in unbilled revenues recognized under rate agreement reflects the completion of the recognition of $14 million in unbilled revenues over a 21 month period that ended December 31, 1995 in accordance with the Company's 1994 rate agreement. The Company's rates contain a fuel clause and various rate adjustment mechanisms. These mechanisms are designed to allow the Company to true-up the recovery of purchased energy costs from NEP. Operating Expenses - ------------------ The following table summarizes the changes in operating expenses which are discussed below: Increase (Decrease) in Operating Expenses Third Quarter Nine Months ------------- ------------ 1996 vs 1995 1996 vs 1995 ------------- ------------ (In Millions) Fuel for generation and purchased electric energy Fuel $ 2 $ - Other (1) (1) Other operation and maintenance DSM 1 1 Other (2) 1 Depreciation (1) (1) Taxes, other than income taxes 1 2 --- --- $ - $ 2 === === The decrease in other operation and maintenance expense in the third quarter reflects a decrease in uncollectible accounts expense and fringe benefit costs. The increase in the nine-month period reflects increased distribution system-related expenses. The decrease in depreciation reflects reduced dismantlement costs associated with the retired South Street generation plant. This decrease was partially offset by increased depreciation on the Manchester Street repowering project which went into service in the second half of 1995 and new plant expenditures. The increase in taxes, other than income taxes in 1996 is due to increased property taxes, including taxes on the Manchester Street Station. Utility Plant Expenditures and Financings - ----------------------------------------- Cash expenditures for utility plant totaled $42 million in the first nine months of 1996. The funds necessary for utility plant expenditures were primarily provided by net cash from operating activities, after the payment of dividends, and short-term debt issuances. During the first nine months of 1996 the Company refinanced $2 million of long-term debt at an interest rate of 7.24 percent. The Company plans to issue an additional $10 million of long-term debt later in 1996. At September 30, 1996, the Company had $25 million of short- term debt outstanding of which $18 million represents commercial paper borrowings. The Company currently has lines of credit with banks totaling $41 million. There were no outstanding borrowings under these lines of credit at September 30, 1996. Under the Rhode Island legislation mentioned above, the Company must transfer its generating and transmission assets at net book value less deferred tax reserves to affiliated companies. Net book value before deduction of deferred tax reserves is approximately $45 million for generating assets and $105 million for transmission assets. The proceeds from these transfers will be used to reduce short-term debt, fund capital expenditures, retire outstanding first mortgage bonds, or for other general corporate purposes. For the twelve-month period ending September 30, 1996, the ratio of earnings to fixed charges was 2.60. 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 statements on Form S-3, Commission file Nos. 33-49455, 33-50015, and 33-61131. 12 Statement re computation of ratios The Company is filing Financial Data Schedules. The Company filed a report on Form 8-K dated October 1, 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 September 30, 1996 to be signed on its behalf by the undersigned thereunto duly authorized. THE NARRAGANSETT ELECTRIC COMPANY s/Howard W. McDowell Howard W. McDowell Controller, Authorized Officer, and Principal Accounting Officer Date: November 8, 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 THE NARRAGANSETT ELECTRIC COMPANY Computation of Ratio of Earnings to Fixed Charges (SEC Coverage) (Unaudited)
12 Months Ended September 30, 1996 Years Ended December 31, Actual ------------------------------------------------------------- (Unaudited) 1995 1994 1993 1992 1991 -------------- ---- ---- ---- ---- ---- (In Thousands) Net Income $22,723 $23,910 $14,589 $14,274 $21,052 $16,820 - ---------- Add income taxes and fixed charges - ---------------------------------- Current federal income taxes 9,311 7,212 1,020 2,183 4,608 1,558 Deferred federal income taxes 1,283 3,512 3,930 2,199 4,560 5,528 Investment tax credits - net (500) (503) (508) (508) (507) (500) Interest on long-term debt 17,214 16,627 14,334 12,715 13,290 12,581 Interest on short-term debt and other 3,277 3,663 2,897 2,074 1,277 2,500 ------- ------- ------- ------- ------- ------- Net earnings available for fixed charges $53,308 $54,421 $36,262 $32,937 $44,280 $38,487 ------- ------- ------- ------- ------- ------- Fixed charges: Interest on long-term debt $17,214 $16,627 $14,334 $12,715 $13,290 $12,581 Interest on short-term debt and other 3,277 3,663 2,897 2,074 1,277 2,500 ------- ------- ------- ------- ------- ------- Total fixed charges $20,491 $20,290 $17,231 $14,789 $14,567 $15,081 ======= ======= ======= ======= ======= ======= Ratio of earnings to fixed charges $2.60 2.68 2.10 2.23 3.04 2.55 - ----------------------------------
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 THE NARRAGANSETT ELECTRIC COMPANY, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 DEC-31-1996 SEP-30-1996 9-MOS PER-BOOK 555,851 0 107,448 60,685 0 723,984 56,624 80,170 117,400 254,194 0 36,500 178,488 24,925 0 0 32,500 0 0 0 197,377 723,984 384,236 8,118 342,168 350,286 33,950 (1,377) 32,573 14,997 17,576 1,608 15,968 6,795 12,899 47,124 0 0 Total deferred charges includes other assets. Short-term notes includes commercial paper obligations and short-term debt to affiliates. Per share data is not relevant because the Company's common stock is wholly-owned by New England Electric System. -----END PRIVACY-ENHANCED MESSAGE-----