-----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, UK7jEnFmKfjthdLEAYepgjOF6zqZtefbobzPRuaPFBtiwmBN5HfyHGPQNzT9Oxlb FeBYrfHGtXY2W0f2LERvLg== 0000071297-97-000008.txt : 19970222 0000071297-97-000008.hdr.sgml : 19970222 ACCESSION NUMBER: 0000071297-97-000008 CONFORMED SUBMISSION TYPE: 35-CERT PUBLIC DOCUMENT COUNT: 16 FILED AS OF DATE: 19970214 SROS: BSE SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: NEW ENGLAND ELECTRIC SYSTEM CENTRAL INDEX KEY: 0000071297 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 041663060 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 35-CERT SEC ACT: 1935 Act SEC FILE NUMBER: 070-05543 FILM NUMBER: 97533724 BUSINESS ADDRESS: STREET 1: 25 RESEARCH DR CITY: WESTBOROUGH STATE: MA ZIP: 01581 BUSINESS PHONE: 5083669011 35-CERT 1 File Nos. 70-5543/70-6958 70-7055/70-6513 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Report Pursuant to Rule 24 under the Public Utility Holding Company Act of 1935 NEW ENGLAND ELECTRIC SYSTEM (NEES) NEW ENGLAND ENERGY INCORPORATED (NEEI) In accordance with the Orders of the Securities and Exchange Commission dated July 19, 1978, October 22, 1985, October 3, 1991 and December 8, 1987, following is a report for the fourth quarter of 1996: For the purpose of this report and following the Commission's Order dated October 22, 1985 (Release No. 23873), references herein to "Old Program" relate to that portion of the NEEI oil and gas exploration and development program which consists of prospects entered into through December 31, 1983. Likewise, references to "New Program" relate to prospects entered into since December 31, 1983. In 1991, NEEI sold substantially all of the properties in the New Program. No new prospects have been acquired since December 31, 1986. a. Investment in partnerships by prospect: See Exhibit a. b. Summary statement of proved and probable reserves: Old Program -----------
Natural Gas Oil and ----------- Total Condensate Equivalent Equivalent Bbl. MCF Bbl. Bbl. ---------- ---------- ---------- ---------- Balance 9/30/96 897,026 51,905,911 8,650,985 9,548,011 Additions & Revisions through 12/31/96 (9,756) (2,499,980) (416,664) (426,420) --------- ---------- ---------- ---------- Balance 887,270 49,405,931 8,234,321 9,121,591 Production 4th Qtr.1996 (78,180) (2,769,709) (461,618) (539,798) --------- ---------- ---------- ---------- Balance 12/31/96 809,090 46,636,222 7,772,703 8,581,793
New Program ----------- None. -2- c. Production and revenue by prospect: See Exhibit c. d. Description of Operations: NEEI has participated through its partnership with Samedan Oil Corporation (Samedan) in drilling operations with the results as summarized below. Also shown are activities on properties acquired from a former partner, Dorchester Exploration, Inc. (Dorchester), prior to termination of that partnership. NEEI sold its remaining interests in "Dorchester" properties as of June 1, 1988. Old Program ----------- Since Quarter Inception ------- --------- No. of dry holes Samedan 0 746 Dorchester 0 51 -- ----- 0 797 -- ----- No. of productive wells Samedan 5 1,180* Dorchester 0 69* -- ----- 5 1,249* -- ----- No. of wells drilled 5 2,046 (both exploration and development) -- ----- * Includes depleted/sold wells as follows: Samedan 5 521 Dorchester 0 69 -- ----- 5 590 -- ----- New Program ----------- None. INVESTMENT ---------
Budget Authorized Actual By SEC ------------------------- ----------------- Twelve Since Quarter Months 1/1/95 1995 - 1998 ---------- ---------- ---------- ----------------- Samedan $4,317,910 $13,544,460 $18,961,338 $30,000,000 (A) (A) Authorized through December 31, 1998, by Order dated December 20, 1994 (Release No. 35-26197; 70-7055).
-3- e. Fuel Production, Sales and Other Income: Old Program: 1. Sales to affiliates: There have been no direct sales of NEEI oil and gas production to affiliates.
Quarter Year Inception Ended Ended Thru 12/31/96 12/31/96 12/31/96 -------- --------- --------- 2. Sales to nonaffiliates (Exhibit c.): Equivalent barrels of fuel produced 539,799 2,426,135 50,776,029 Average price per barrel $ 13.94 $ 13.74 $ 14.03 ----------- ------------ -------------- Sales revenues $ 7,523,845 $ 33,338,230 $ 712,262,059 3. Loss to NEP 586,815 21,648,465 350,479,980 4. Flow through of excess deferred 529,499 2,354,323 83,778,252 taxes 5. Investment tax credit - - 13,817,248 6. Depletion - - 6,740,318 7. Deferred tax related to reserve - - 9,080,000 addition 8. Transfer of reserve (net) from - - 6,400,000 NEES ----------- ------------ -------------- Total $8,640,159 $ 57,341,018 $1,182,557,857 ----------- ------------ -------------- New Program: None. f. Credits applied to New England Power Company (NEP): 1. Disposition of proceeds: Amortization of cost of fuel reserves* $4,400,490 $ 49,163,223 $1,081,940,167 Production costs 2,382,069 4,427,976 82,437,448 State taxes 1,857,600 2,549,900 11,502,575 Savings to NEP - - 8,701,242 Royalty to NEP - - 1,099,807 Other - 1,199,919 1,265,391 ----------- ------------ -------------- Total $ 8,640,159 $ 57,341,018 $1,186,946,630 ----------- ------------ -------------- Net income/(loss)/retained $ - $ - $ (4,388,773) deficit ----------- ------------ --------------
-4- f. continued
Quarter Year Inception Ended Ended Thru 12/31/96 12/31/96 12/31/96 -------- --------- --------- 2. Royalties prepaid to NEP: Beginning balance in account$ 342,312 $ 342,312 $ - ------------ ------------ ------------ Royalties/savings earned - - (9,801,049) Royalties passed on to NEP - - 10,143,361** ------------ ------------ ------------ Ending balance in account $ 342,312 $ 342,312 $ 342,312 ------------ ------------ ------------ 3. Losses to be passed on to NEP: Beginning balance in account $ 25,878,422 $ 43,731,259 $ - ------------ ------------ ------------ Losses accrued 586,815 21,648,465 350,479,979 Losses passed on to NEP*** (4,816,772) (43,731,259) (328,831,514) ------------ ------------ ------------ Ending balance in account $ 21,648,465 $ 21,648,465 $ 21,648,465 ------------ ------------ ------------ * During 1996, NEEI recorded a $13 million adjustment which reduced its amortization expense to correct amounts recorded in the years 1990 through 1996. The adjustment resulted from an overstatement of NEEI's production figures used in its amortization calculations. The following table shows the effects of this correction: Flow through of excess Amortization Deferred Taxes (000's) (000's) ------------ -------------- 1996 before adjustment $ 62,278 $ 3,269 Correction 1990-1996 (13,115) (914) ------------ -------------- $ 49,163 $ 2,355 ============ ============== ** Includes $8,701,242 savings passed on to NEP for sales prior to 1/1/84 pursuant to Commission Order File No. 70-5543. ***Consistent with pricing policy approved in Release No. 23873, current year losses cannot be recovered until the following year.
-5- g. Investment by NEES compared with Commission Authorization:
Release No./Date -------------------------------------- 25129 24847 24847 ----- ----- ----- 8/8/90 3/29/89 3/29/89 ------ ------- ------- Maximum NEES Investment authorized: $45,000,000(1) $75,000,000 $400,000,000 ----------- ----------- ------------ 1. Investments by NEES-inception through September 30, 1996 (net) Subordinated notes 4,676,080 15,743,491 1 - Common stock and premium 250,000 - - ----------- ----------- ------------ Total investment by NEES 4,926,080 15,743,491 - Investment by NEES-during the quarter (net) Subordinated notes 577,300 - - Total investment by NEES through December 31, 1996 (net) Subordinated notes 5,253,380 15,743,491 - Common stock and premium 250,000 - - ----------- ----------- ------------ $ 5,503,380 $15,743,491 $ - ----------- ----------- ------------ 2. Increase or Reduction in Investment by NEES: Date Amount Date Amount Date Amount ---- ------ ---- ------ ---- ------ Issues of subordinated notes to NEES during quarter 12/13/96 $ 577,300 $ - $ - ended December 31, 1996 Payments of subordinated notes to NEES during quarter ended December 31, 1996 ---------- ------- ------- Net change in investment $ 577,300 $ - $ - ---------- ------- ------- _______________ (1) Plus any after-tax net loss attributable to the expensing of interest on up to $37,200,000 of borrowings in connection with the Old Program.
-6- h. Financial Statements: Exhibit h-1 Balance Sheet of NEEI at December 31, 1996, (unaudited, subject to adjustment) Exhibit h-2 Statement of Income and Retained Deficit of NEEI for the periods ended December 31, 1996 (unaudited, subject to adjustment) Exhibit h-3 Statement of Cash Flows of NEEI for the periods ended December 31, 1996 (unaudited, subject to adjustment) Exhibit h-4 Computation of Bank Interest for the quarter ended December 31, 1996 i. Fuel purchased during quarter for NEP: (Summary: See Exhibit i for detail.) 1. From proceeds from sale of NEEI Old Program production Date purchased (delivered) 4th Quarter Quantity of fuel (equiv. bbl) 345,603 Average net price (per equiv. bbl) $ 6.75 ------------- Cost to NEEI $ 2,334,007 Loss from NEEI fuel exploration activities 4,816,772 ------------- Cost to NEP 7,150,779 Adjustments, inspection charges, etc. 379,424* ------------- ----------- Total $ 7,530,203 =========== * Primarily represents a demurrage adjustment relating to 3rd Quarter. j. Copies of filings on Form 429 related to the above sales are attached. (See Exhibits j-1 through j-6.) k. Use of Proceeds from Sales of NEEI New Program Production: None. -7- Sale of NEEI Wells ------------------ Old Program - ----------- During the period from October 1, 1996 through December 31, 1996, NEEI disposed of its interest in Existing (Old) Program wells containing proved or probable reserves as follows: Est. Net Reserves Effective (Eq. Bbls) as Date of of Date of Prospect Location Disposition Disposition -------- -------- ----------- ------------------ Niles Channel Canadian County, OK Powers D Well 10/01/96* 172 George Murray Well # 1-3 12/31/96* 281 Banner Canadian County, OK Alma Well # 1-3 12/31/96* 566 North Oswalt Love County, OK Cantrell Well # 1-17 12/31/96* 0 Banks Well # 1-9 12/31/96* 493 SE Crane Custer County, OK 4-D Cattle Co. 12/31/96* 1,483 Greenfield Blaine County, OK Lake Farms # 1-33 12/31/96* 0 West Grand Ellis County, OK BMB Well # 6-1 12/31/96* 74 SW Maysville Garvin County, OK WE Bigbie Well # 1 12/31/96* 85 Clinton Custer County, OK Oscar Collins Well # 1 12/31/96* 72 Curtis Lockhart # 3-9 12/31/96* 3,336 Meacham Well # 3-2 12/31/96* 456 Varna Well # 1-6 12/31/96* 0 Minco Grady County, OK Wehling Well # 1-21 12/31/96* 607 ------ 7,625 ====== * Reported by Samedan in the fourth quarter of 1996. -8- The order of the Securities and Exchange Commission dated October 22, 1985 (Release No. 23873) requires NEEI to include the reserves associated with the above wells as production upon which royalties would be payable to NEP, but authorizes NEEI to defer such inclusion to coincide with the estimated production cycle for each well. However, in light of the particularly small quantities of reserves represented in the table above, NEEI will include the total 0 barrels of remaining reserves in the calculation of the royalty for 1995. Due to operating losses, no royalty has been paid since 1985. Losses Passed to NEP -------------------- Through December 31, 1985, NEEI's Old Program generated customer savings. Due to precipitous declines in oil and gas market prices, the Old Program generated operating losses for the first time during 1986. As a result of the losses during 1986, the crossover reserve, which was $24.1 MM at December 31, 1985, was exhausted. NEEI passed its 1986 losses in excess of the reserve, $277,732, on to NEP in 1987. NEEI's Old Program incurred losses in 1987 through 1995 totalling $328,553,783 which were passed on to NEP in 1988 through 1996. -9- SIGNATURES Pursuant to the requirements of the Public Utility Holding Company Act of 1935, each undersigned company has duly caused this report (Commission's File Nos. 70-5543, 70-6513, 70-6958, and 70-7055) to be signed on its behalf, as indicated, by the undersigned officer thereunto duly authorized by each such company. NEW ENGLAND ELECTRIC SYSTEM s/Michael E. Jesanis Michael E. Jesanis, Treasurer NEW ENGLAND ENERGY INCORPORATED s/John G. Cochrane John G. Cochrane, Treasurer Date: February 14, 1997 The name "New England Electric System" means the trustee or trustees for the time being (as trustee or trustees but not personally) under an agreement and declaration of trust dated January 2, 1926, as amended, which is hereby referred to, and a copy of which as amended has been filed with the Secretary of the Commonwealth of Massachusetts. Any agreement, obligation or liability made, entered into or incurred by or on behalf of New England Electric System binds only its trust estate, and no shareholder, director, trustee, officer or agent thereof assumes or shall be held to any liability therefor. EX-99 2 EXHIBIT INDEX Exhibit No. Description Page - ----------- ----------- ---- a Investment in partnerships by prospect Filed herewith (Old Program) c-1 Production and net revenue for the Filed herewith quarter ended December 31, 1996 (Old Program) c-2 Production and net revenue for the Filed herewith year ended December 31, 1996 (Old Program) h-1 Balance Sheet at December 31, 1996 Filed herewith (Unaudited, Subject to Adjustment) h-2 Statement of Income and Retained Filed herewith Deficit for the Periods Ended December 31, 1996 (Unaudited, Subject to Adjustment) h-3 Statement of Cash Flows for the Periods Filed herewith Ended December 31, 1996 (Unaudited, Subject to Adjustment) h-4 Computation of Bank Interest for the Filed herewith Quarter Ended December 31, 1996 i Fuel Purchased for NEP for the Quarter Filed herewith Ended December 31, 1996 j-1 Monthly Report of Cost and Quality Filed herewith of Fuels for Electric Plants October 1996 (Brayton Point) j-2 Monthly Report of Cost and Quality Filed herewith of Fuels for Electric Plants October 1996 (Salem Harbor) j-3 Monthly Report of Cost and Quality Filed herewith of Fuels for Electric Plants November 1996 (Brayton Point) j-4 Monthly Report of Cost and Quality Filed herewith of Fuels for Electric Plants November 1996 (Salem Harbor) j-5 Monthly Report of Cost and Quality Filed herewith of Fuels for Electric Plants December 1996 (Brayton Point) j-6 Monthly Report of Cost and Quality Filed herewith of Fuels for Electric Plants December 1996 (Salem Harbor) EX-99 3 Exhibit a NEW ENGLAND ENERGY INCORPORATED INVESTMENT IN PARTNERSHIPS BY PROSPECT - OLD PROGRAM DECEMBER 31, 1996
ESTIMATED TOTAL COST --------------------------------------------------- Samedan Prospect Name Exploration Development* Total - ------- ------------- ----------- ------------ --------- 62583 Brazo 50-54/37&8/65-7 17,348,177.51 51,605,954.27 68,954,131.78 62436 Eugene Island 247/8/9 5,215,869.84 23,383,100.23 28,598,970.07 61402 Northeast Chevron 2,564,516.91 23,292,927.25 25,857,444.16 62493 Eugene Island Blk 208 1,584,198.43 18,841,421.00 20,425,619.43 62559 West Delta 18/33 8,777,050.78 11,000,230.07 19,777,280.85 62479 Main Pass 90/93+4/102+5 3,857,539.09 15,704,439.45 19,561,978.54 62367 Hl 21/22/22L/34/50/51 3,990,235.56 14,599,104.64 18,589,340.20 61998 High Island A365/A376 0.00 12,032,536.55 12,032,536.55 62282 West Cameron b131/132 0.00 5,903,897.14 5,903,897.14 62289 Main Pass 107/108 1,445,886.28 8,601,380.72 10,047,267.00 62468 Vermilion 114/109 1,323,006.83 5,717,343.33 7,040,350.16 61898 Eugene Island B 24&27 2,966,101.13 4,030,992.27 6,997,093.40 62331 West Delta 27/28/48 2,746,928.39 3,963,376.85 6,710,305.24 21494 Banner 311,363.33 5,304,839.00 5,616,202.33 62554 Eugene Island 28 1,739,766.26 3,778,996.01 5,518,762.27 62366 Brazos 400.12.13.435 1,778,642.70 3,598,632.54 5,377,275.24 61501 Vermilion 241/261 (EC) 2,221,789.49 3,078,504.71 5,300,294.20 62365 Matagorda Is B 586/87 2,208,706.08 2,818,120.08 5,026,826.16 53330 Derrick Draw/ PDR RIV 2,337,032.22 1,327,662.93 3,664,695.15 62558 South Timbalier 197 2,307,523.54 531,751.78 2,839,275.32 51673 Williston 0.00 2,634,434.80 2,634,434.80 62377 Vermilion Block 76 945,194.48 1,652,785.69 2,597,980.17 62543 West Cameron 433/457 333,421.78 2,246,051.71 2,579,473.49 62284 Vermilion Blk 167 924,503.21 1,513,959.69 2,438,462.90 62322 West Cameron Blk 67 0.00 2,420,322.67 2,420,322.67 51947 Powder River Basin 2,415,841.82 0.00 2,415,841.82 21617 Fort Cobb 409,491.11 1,717,809.42 2,127,300.53 42004 Provident City/Speaks 0.00 1,820,407.27 1,820,407.27 42017 Kildare Smackover T 975,025.30 2,680,168.33 3,655,193.63 Other 15,133,122.22 24,091,775.76 39,224,897.98 -------------- -------------- -------------- Total Productive Samedan 85,860,934.29 259,892,926.16 345,753,860.45 -------------- -------------- -------------- Dry Holes Samedan (including depleted wells) 407,702,321.18 407,702,321.18 Work in Process Samedan 7,532,221.35 7,532,221.35 Dorchester (terminated investment) 67,401,440.17 67,401,440.17 -------------- -------------- -------------- Grand Total 568,496,916.99 259,892,926.16 828,389,843.15 ============== ============== ============== *Includes Lease Acquisition
EX-99 4 Exhibit c-1 NEW ENGLAND ENERGY INCORPORATED PRODUCTION AND NET REVENUE - OLD PROGRAM FOR THE QUARTER ENDED DECEMBER 31, 1996
Production Revenue ---------------------------------------------------------------- Oil and Prospect Condensate Gas Oil and No. Prospect Name Bbls. MCF Condensate Gas Total - -------- ------------- ---------- ----- ---------- ----- ------- 62583 Brazo 50-54/37&8/65-7 2,948.76 1,511,851.00 68,339.892,852,433.24 2,920,773.13 62367 HI 21/22/22L/34/50/51 1,251.99 414,610.00 28,522.66 839,953.36 868,476.02 61998 High Island A365/A376 5,558.08 120,659.00 125,835.66 273,811.01 399,646.67 42017 Kildare Smackover T 18,414.31 (964.00) 363,920.47 10,222.69 374,143.16 62289 Main Pass 107/108 3,197.04 (34,504.00) 74,193.13 250,541.78 324,734.91 61898 Eugene Island B 24/27 2,917.74 96,785.00 66,724.16 223,030.32 289,754.48 62479 Main Pass 90/93+4/102+5 155.55 134,476.00 2,520.19 281,276.72 283,796.91 62365 Matagora Island B586/87 85.78 126,963.00 1,860.85 231,987.03 233,847.88 53330 Derrick Draw/PDR RIV 11,433.73 (1,179.00) 228,965.13 389.99 229,355.12 62288 West Cameron Blk 290 284.35 98,655.00 6,167.10 214,603.81 220,770.91 62554 Eugene Island 28 2,501.88 63,954.00 57,201.33 143,732.80 200,934.13 62366 Brazos 400.12.13.435 406.79 92,479.00 8,036.28 166,780.03 174,816.31 61410 High Island B270/281 420.57 79,254.00 9,197.24 165,536.36 174,733.60 62493 Eugene Island Blk 208 6,668.55 2,912.00 146,157.63 6,157.14 152,314.77 62582 Brazos 476/491/449 65.71 76,300.00 1,469.98 133,327.87 134,797.85 Other 21,869.44 (12,541.25) 256,174.60 284,774.61 540,949.21 --------- ------------------------ ------------ ------------ Totals 78,180.27 2,769,709.75 1,445,286.306,078,558.76 7,523,845.06 ========= ======================== ============ ============
EX-99 5 Exhibit c-2 NEW ENGLAND ENERGY INCORPORATED PRODUCTION AND NET REVENUE - OLD PROGRAM FOR THE YEAR ENDED DECEMBER 31, 1996
Production Revenue ------------------------- ---------------------------------- Oil and Prospect Condensate Gas Oil and No. Prospect Name Bbls. MCF Condensate Gas Total - -------- ------------- ---------- ----- ---------- ----- ------ 62583 Brazo 50-54/37&8/65-7 14,072.16 4,300,303.00 286,662.978,788,515.45 9,075,178.42 62367 HI 21/22/22L/34/50/51 5,114.53 1,927,477.00 103,086.444,592,764.19 4,695,850.63 62479 Main Pass 90/93+4/102+5 155.55 1,078,589.00 2,520.192,665,028.12 2,667,548.31 62289 Main Pass 107/108 13,771.02 854,770.00 278,653.312,093,849.76 2,372,503.07 61410 High Island B270/281 2,561.51 661,791.00 50,911.301,525,387.74 1,576,299.04 61998 High Island A365/A376 29,463.02 406,119.00 571,559.69 972,505.90 1,544,065.59 61898 Eugene Island B 24/27 16,149.00 394,422.00 308,374.14 944,909.45 1,253,283.59 62366 Brazos 400.12.13.435 2,243.68 517,627.00 39,536.68 994,865.21 1,034,401.89 62554 Eugene Island 28 14,554.61 310,245.00 277,866.46 707,099.76 984,966.22 62365 Matagora Island B586/87 263.64 539,928.00 4,945.99 973,328.66 978,274.65 62288 West Cameron Blk 290 1,247.24 456,234.00 23,293.35 935,236.85 958,530.20 53330 Derrick Draw/PDR RIV 49,583.30 659.00 911,658.47 1,687.34 913,345.81 42017 Kildare Smackover T 42,548.80 31,565.00 805,219.74 53,228.09 858,447.83 62582 Brazos 476/491/449 272.97 336,422.00 5,444.04 626,712.80 632,156.84 62493 Eugene Island Blk 208 30,289.78 16,231.00 586,533.46 41,669.72 628,203.18 Other 102,744.06 774,210.75 1,725,680.581,439,494.00 3,165,174.58 ---------- --------------------------------------------------- Totals 325,034.87 12,606,592.75 5,981,946.81 27,356,283.04 33,338,229.85 ========== ===================================================
EX-99 6 Exhibit h-1 NEW ENGLAND ENERGY INCORPORATED Balance Sheet December 31, 1996 (Unaudited, Subject to Adjustment)
ASSETS - ------ Old Program New Program Combined ----------- ----------- -------- Current assets: Cash, including temporary cash investments of $175,000 with affiliated companies $ 331,551 $ (132,157) $ 199,394 Accounts receivable: Affiliated companies: - accrued loss to be passed on to affiliate 21,648,465 - 21,648,465 - from sales of oil 7,960 - 7,960 - other 52,396 - 52,396 Prepaid expenses 342,312 - 342,312 -------------- ------------ -------------- Total current assets 22,382,684 (132,157) 22,250,527 -------------- ------------ -------------- Property at cost: Cost of fuel reserves: Exploration and development costs: Samedan 753,456,182 - 753,456,182 Dorchester 67,401,440 - 67,401,440 Cost of capital 450,648,517 - 450,648,517 Other 37,201,151 - 37,201,151 -------------- ------------ -------------- 1,308,707,290 - 1,308,707,290 Less-accumulated amortization (1,081,940,167) -(1,081,940,167) -------------- ------------ -------------- Net cost of fuel reserves 226,767,123 - 226,767,123 Work in process - Samedan 7,532,221 - 7,532,221 -------------- ------------ -------------- Total property 234,299,344 - 234,299,344 -------------- ------------ -------------- $ 256,682,028 $ (132,157) $ 256,549,871 ============== ============ ============== LIABILITIES AND PARENT COMPANY'S INVESTMENT - ------------------------------------------- Current liabilities: Accrued exploration and development costs $ 29,578,745 $ - $ 29,578,745* Accounts payable 1,953,634 58,592 2,012,226 Accrued interest 941,389 - 941,389 Accrued taxes 3,763,759 (184,254) 3,579,505 -------------- ------------ -------------- Total current liabilities 36,237,527 (125,662) 36,111,865 -------------- ------------ -------------- Deferred income taxes 72,292,378 (42,800) 72,249,578 -------------- ------------ -------------- Deferred credit 2,648,200 - 2,648,200 -------------- ------------ -------------- Notes payable to banks under credit agreement 149,000,000 - 149,000,000 -------------- ------------ -------------- Parent company's investment: Subordinated notes payable to parent 5,253,38015,743,491 20,996,871 Common stock, par value $1 per share 2,500 - 2,500 Paid-in capital 247,500 - 247,500 Retained deficit (8,999,457)(15,707,186) (24,706,643) -------------- ------------ -------------- Total parent company's investment (3,496,077) 36,305 (3,459,772) -------------- ------------ -------------- $ 256,682,028 $ (132,157) $ 256,549,871 ============== ============ ============== *Accrued exploration and development costs: Total (All Samedan) ------------- Exploration $11,806,138 Development 19,069,580 Work in process 274,917 Advance (1,571,890) ----------- 29,578,745 ===========
EX-99 7 Exhibit h-2 Page 1 of 2 NEW ENGLAND ENERGY INCORPORATED Statements of Income and Retained Deficit For the Quarter Ended December 31, 1996 (Unaudited, Subject to Adjustment)
Old Program New Program Combined ----------- ----------- -------- Operating revenue: Sales of fuel to an affiliate $ 7,530,203$ -$ 7,530,203 Loss passed on to an affiliate (4,816,772) - (4,816,772) Accrued loss to be passed on to an affiliate 586,815 - 586,815 Sales to nonaffiliates: Oil 1,445,286 - 1,445,286 Gas 6,078,559 727 6,079,286 ------------------------------------ Total operating revenue 10,824,091 727 10,824,818 ------------------------------------ Operating expenses: Purchases of fuel for an affiliate 2,713,431 - 2,713,431 Amortization of cost of fuel reserves 4,400,490 - 4,400,490 Production costs 1,182,150 1,905 1,184,055 ------------------------------------ Total operating expenses 8,296,071 1,905 8,297,976 ------------------------------------ Operating income/(loss) 2,528,020 (1,178) 2,526,842 Other income/(expense): Interest income - - - Interest expense (593,300) - (593,300) Other expense (1,199,919) - (1,199,919) State taxes (1,836,233) - (1,836,233) ------------------------------------ Operating and other income/(loss) (1,101,432) (1,178) (1,102,610) ------------------------------------ Federal income taxes: Current federal income taxes 1,355,350 (45,500) 1,309,850 Deferred federal income taxes (2,084,982) - (2,084,982) ------------------------------------ Net federal income taxes (729,632) (45,500) (775,132) ------------------------------------ Net income (371,800) 44,322 (327,478) Retained deficit at beginning of period (8,627,657)(15,751,508)(24,379,165) ------------------------------------ Retained deficit at end of period $ (8,999,457) $(15,707,186) $(23,706,643) ============ ============ ============
Exhibit h-2 Page 2 of 2 NEW ENGLAND ENERGY INCORPORATED Statements of Income and Retained Deficit For the Year Ended December 31, 1996 (Unaudited, Subject to Adjustment)
Old Program New Program Combined ----------- ----------- -------- Operating revenue: Sales of fuel to an affiliate $ 64,505,151$ -$ 64,505,151 Loss passed on to an affiliate (43,731,259) - (43,731,259) Accrued loss to be passed on to an affiliate 21,648,465 - 21,648,465 Sales to nonaffiliates: Oil 5,981,947 6 5,981,953 Gas 27,356,283 10,769 27,367,052 ------------------------------------ Total operating revenue 75,760,587 10,775 75,771,362 ------------------------------------ Operating expenses: Purchases of fuel for an affiliate 20,773,892 - 20,773,892 Amortization of cost of fuel reserves* 49,163,223 - 49,163,223 Production costs 4,427,976 15,129 4,443,105 General and Administrative Costs - - - ------------------------------------ Total operating expenses 74,365,091 15,129 74,380,220 ------------------------------------ Operating income/(loss) 1,395,496 (4,354) 1,391,142 Other income/(expense): Interest income - - - Interest expense (2,289,891) - (2,289,891) Other Expense (1,218,616) - (1,218,616) State taxes (2,466,833) - (2,466,833) ------------------------------------ Operating and other income/(loss) (4,579,844) (4,354) (4,584,198) ------------------------------------ Federal income taxes: Current federal income taxes 16,766,985 (46,600) 16,720,385 Deferred federal income taxes (19,900,382) - (19,900,382) ------------------------------------ Net federal income taxes (3,133,397) (46,600) (3,179,997) ------------------------------------ Net income (1,446,447) 42,246 (1,404,201) Retained deficit at beginning of period (7,553,010)(15,749,432)(23,302,442) ------------------------------------ Retained deficit at end of period $ (8,999,457) $(15,707,186) $(24,706,643) ============ ============ ============ *During 1996, NEEI recorded a $13 million adjustment which reduced its amortization expense to correct amounts recorded in the years 1990 through 1996. The adjustment resulted from an overstatement of NEEI's production figures used in its amortization calculations. The following table shows the effects of this correction: Amortization (000's) ------------ 1996 before adjustment $ 62,278 Correction 1990-1996 (13,115) ------------ Net amount recorded $ 49,163 ============ Included in deferred taxes is $5,185 associated with the amortization adjustmentstated above.
EX-99 8 Exhibit h-3 Page 1 of 2 NEW ENGLAND ENERGY INCORPORATED Statements of Cash Flows For the Quarter Ended December 31, 1996 (Unaudited, Subject to Adjustment)
Old Program New Program Combined ----------- ----------- -------- Operating Activities: Net income $ (371,800)$ 44,322$ (327,478) Adjustments to reconcile net income to net cash provided by operating activities: Amortization of cost of fuel reserves 4,400,490 - 4,400,490 Loss passed on to an affiliate 4,816,772 - 4,816,772 Accrued loss to be passed on to an affiliate(586,815) - (586,815) Deferred income taxes (1,987,781) - (1,987,781) (Increase)/decrease in accounts receivable (excluding loss to be passed on to affiliate) 6,359,782 - 6,359,782 Increase/(decrease) in accrued exploration and development costs (969,237) - (969,237) Increase/(decrease) in accounts payable (3,432,678) (98,754) (3,531,432) Increase/(decrease) in accrued interest payable 247,727 -247,727 Increase/(decrease) in accrued taxes (661,668) (4,303) (665,971) ------------ --------------------- Net cash provided by operating activities $ 7,814,792 $ (58,735) $ 7,756,057 ------------ --------------------- Investing Activities: Investment in property - Samedan: Exploration (also includes dry holes, depleted wells and work in process) $ (2,919,661)$ -$ (2,919,661) Development (also reflects transfer of depleted wells) (1,143,465) - (1,143,465) Capital costs (1,561,617) - (1,561,617) Other (1,083,391) - (1,083,391) ------------ --------------------- Net cash used in investing activities $ (6,708,134)$ -$ (6,708,134) ------------ --------------------- Financing Activities: Subordinated notes payable to parent-issues $ 577,300 $ - $ 577,300 Subordinated notes payable to parent-retirements - - - Changes in notes payable to bank under credit agreement (7,000,000) - (7,000,000) ------------ --------------------- Net cash used in financing activities $ (6,422,700)$ -$ (6,422,700) ------------ --------------------- Net increase/(decrease) in cash and cash equivalents $ (5,316,042) $ (58,735) $ (5,374,777) Cash and cash equivalents at beginning of period5,647,593 (73,422) 5,574,171 ------------ --------------------- Cash and cash equivalents at end of period $ 331,551 $(132,157) $ 199,394 ------------ ---------------------
Exhibit h-3 Page 2 of 2 NEW ENGLAND ENERGY INCORPORATED Statements of Cash Flows For the Year Ended December 31, 1996 (Unaudited, Subject to Adjustment)
Old Program New Program Combined ----------- ----------- -------- Operating Activities: Net income $ (1,446,447) $ 42,246$ (1,404,201) Adjustments to reconcile net income to net cash provided by operating activities: Amortization of cost of fuel reserves 49,163,223 - 49,163,223 Loss passed on to an affiliate 43,731,259 - 43,731,259 Accrued loss to be passed on to an affiliate (21,648,465) -(21,648,465) Deferred income taxes (20,511,781) - (20,511,781) (Increase)/decrease in accounts receivable (excluding loss to be passed on to affiliate) 27,546 410 27,956 Increase/(decrease) in accrued exploration and development costs 2,343,316 - 2,343,316 Increase/(decrease) in accounts payable 115,877 (191,351) (75,474) Increase/(decrease) in accrued interest payable 181,133 -181,133 Increase/(decrease) in accrued taxes payable 2,207,459 (5,400) 2,202,059 ------------ --------------------- Net cash provided by operating activities $ 54,163,120 $(154,095)$ 54,009,025 ------------ --------------------- Investing Activities: Investment in property - Samedan: Exploration (also includes dry holes, depleted wells and work in process) $ (7,743,523)$ -$ (7,743,523) Development (also reflects transfer of depleted wells) (5,267,609) - (5,267,609) Capital costs (6,784,326) - (6,784,326) Other (2,918,437) - (2,918,437) ------------ --------------------- Net cash used in investing activities $(22,713,895)$ -$(22,713,895) ------------ --------------------- Financing Activities: Subordinated notes payable to parent-issues $ 4,771,136 $ - $ 4,771,136 Subordinated notes payable to parent-retirements (4,000,000) - (4,000,000) Changes in notes payable to bank under credit agreement (33,000,000) - (33,000,000) ------------ --------------------- Net cash used in financing activities $(32,228,864)$ -$(32,228,864) ------------ --------------------- Net increase/(decrease) in cash and cash equivalents $ (779,639) $(154,095)$ (933,734) Cash and cash equivalents at beginning of period1,111,190 21,938 1,133,128 ------------ --------------------- Cash and cash equivalents at end of period $ 331,551 $(132,157) $ 199,394 ------------ ---------------------
EX-99 9 Exhibit h-4 NEW ENGLAND ENERGY INCORPORATED Computation of Bank Interest Quarter Ended December 31, 1996 -------------------------------- Cost of Notes Payable to Banks Under Credit Agreement - -----------------------------------------------------
Date Paid Date or Maturity Annual Amount Issued Date Rate % Total ------ ------ ----------- ------ ----- Old Program ----------- $ 40,000,000 02/13/96 02/13/97 5.2975 $ 541,522.21 15,000,000 07/18/96 10/18/96 5.8375 41,348.96 10,000,000 08/29/96 10/31/96 5.6725 47,270.83 15,000,000 09/13/96 12/13/96 5.8600 178,241.67 37,000,000 09/13/96 03/13/97 6.1725 583,644.17 39,000,000 09/18/96 10/21/96 5.7325 124,204.17 11,000,000 10/18/96 11/18/96 5.6100 44,568.33 30,000,000 10/21/96 01/21/97 5.7625 345,750.00 6,000,000 10/21/96 01/21/97 5.7625 69,150.00 10,000,000 10/31/96 11/30/96 5.6100 43,633.33 11,000,000 11/13/96 01/18/97 5.7350 85,865.69 10,000,000 11/30/96 12/30/96 5.6100 48,308.34 15,000,000 12/13/96 01/13/97 5.8600 46,391.67 10,000,000 12/30/96 01/30/97 5.9225 3,290.28 --------------- 2,203,189.65 Interest Rate Swap (91,332.11) Fees (Primarily facility) 43,059.24 --------------- Total Old Program $2,154,916.78 ---------------
EX-99 10 Exhibit i NEW ENGLAND ENERGY INCORPORATED Fuel Purchased for NEP for the Quarter Ended December 31, 1996 -----------------------------------------
Exploration - ----------- Date purchased (delivered) Oct.22,1996 Oct.28,1996 ----------- ----------- Quantity of fuel (eq. Bbl) 128,310.40 217,292.59 Average net price (per eq. Bbl) $ 6.34 $ 7.00 ------------- -------------- Cost to NEEI 813,774.43 $ 1,522,323.42 Loss from NEEI fuel exploration activities 1,841,503.33 2,975,269.20 -------------- -------------- Cost to NEP $2,655,277.76 $ 4,497,592.62 ------------- --------------
EX-99 11 Exhibit j-1
Monthly Cost and Quality of Fuels for Electric Plants FERC 429 Facsimile 01 Company-Plant Code 13433-1619 02 Month & Year of Report 10/96 03 Reporting Company New England Electric 04 Page Number 1 05 Plant Name Brayton Point 06 Plant Location Brayton Point Road, Somerset, MA 02726 07 Person to be Contacted Fuel Dept. Concerning Data Coal Group Entered on this Form 25 Research Drive, Westboro, MA 01582 08 Telephone Number 508-389-3029 / 508-389-3227 09 Signature of Official Submitting this Report s/ Diane M. Healey 10 Title Fuel Analyst 11 Date Report Completed February 7, 1997 Purchases Coal Mines Only Source Data --------- -------------------------- ------------------------------------------------------- Quality as Received Cont Fuel Coal State County Originating Quantity ------------------- Purch Price Type Expir Type Type Dist Abbr No Location Received BTU Sulfur Ash Cents/MMBT (1) (2) (3) (4) ---- ----- ---- ---- ---- ----- ------ ----------- -------- --- ------ ---- ----------- 12 C 06/96 BIT U 08 WV 059 ASHLAND 65.9 12802 0.67 8.95 175.85 13 C 12/97 BIT S 45 IMP 999 EL CERREJON 39.0 12135 0.60 5.41 198.84 14 C 03/97 BIT U 8 WV 5 HAMPTON 40.5 12625 0.66 9.85 170.70 15 C 08/97 BIT U 50 IM 999 NORTE DE SANTAN 25.4 12512 0.66 8.49 162.26 16 C 03/98 BIT U 8 KY 159 PONTIKI 0.6 12800 0.77 8.00 177.56 17 C 08/96 BIT U 8 WV 045 RUM CREEK 3.5 12425 0.69 10.16 166.37 18 C 12/97 BIT U 8 WV 045 RUM CREEK 36.6 12338 0.72 9.88 168.53 19 C 05/97 BIT S 8 WV 39 SAMPLES 32.3 12595 0.72 10.91 164.03 20 C 05/98 BIT S 8 WV 39 SAMPLES 7.8 12245 0.70 11.37 163.90 21 C 12/96 BIT U 8 WV 59 WINIFREDE 12.8 12862 0.62 8.75 176.43 (1) Coal = 1,000 tons (2) Coal per lb (3) and (4) Percent Oil = 1,000 bbls Oil per gal Gas = 1,000 Mcf Gas per cu ft
EX-99 12 Exhibit j-2
Monthly Cost and Quality of Fuels for Electric Plants FERC 429 Facsimile 01 Company-Plant Code 13433-1626 02 Month & Year of Report 10/96 03 Reporting Company New England Electric 04 Page Number 1 05 Plant Name Salem Harbor 06 Plant Location 24 Fort Ave., Salem, MA 01970 07 Person to be Contacted Fuel Dept. Concerning Data Coal Group Entered on this Form 25 Research Drive, Westboro, MA 01582 08 Telephone Number 508-389-3029 / 508-389-3227 09 Signature of Official Submitting this Report s/ Diane M. Healey 10 Title Fuel Analyst 11 Date Report Completed February 7, 1997 Purchases Coal Mines Only Source Data --------- -------------------------- ------------------------------------------------------- Quality as Received Cont Fuel Coal State County Originating Quantity ------------------- Purch Price Type Expir Type Type Dist Abbr No Location Received BTU Sulfur Ash Cents/MMBT (1) (2) (3) (4) ---- ----- ---- ---- ---- ----- ------ ----------- -------- --- ------ ---- ----------- 12 C 03/98 BIT S 45 999 999 CERREJON CNTRL 25.4 11802 0.49 5.11 161.89 13 C 12/96 BIT S 50 IM 999 DIABLO PASO 52.7 12671 0.65 7.08 145.69 (1) Coal = 1,000 tons (2) Coal per lb (3) and (4) Percent Oil = 1,000 bbls Oil per gal Gas = 1,000 Mcf Gas per cu ft
EX-99 13 Exhibit j-3
Monthly Cost and Quality of Fuels for Electric Plants FERC 429 Facsimile 01 Company-Plant Code 13433-1619 02 Month & Year of Report 11/96 03 Reporting Company New England Electric 04 Page Number 1 05 Plant Name Brayton Point 06 Plant Location Brayton Point Road, Somerset, MA 02726 07 Person to be Contacted Fuel Dept. Concerning Data Coal Group Entered on this Form 25 Research Drive, Westboro, MA 01582 08 Telephone Number 508-389-3029 / 508-389-3227 09 Signature of Official Submitting this Report s/ Diane M. Healey 10 Title Fuel Analyst 11 Date Report Completed February 7, 1997 Purchases Coal Mines Only Source Data --------- -------------------------- ------------------------------------------------------- Quality as Received Cont Fuel Coal State County Originating Quantity ------------------- Purch Price Type Expir Type Type Dist Abbr No Location Received BTU Sulfur Ash Cents/MMBT (1) (2) (3) (4) ---- ----- ---- ---- ---- ----- ------ ----------- -------- --- ------ ---- ----------- 12 C 12/97 BIT S 45 IMP 999 EL CERREJON 34.5 11964 0.62 6.06 153.83 13 C 03/97 BIT U 8 WV 5 HAMPTON 20.6 12663 0.69 10.69 167.26 14 C 06/98 BIT S 8 WV 045 HOBET 31.3 12255 0.70 11.76 170.41 15 C 02/97 BIT U 50 IM 999 NORTE DE SANTAN 37.8 12887 0.67 6.04 158.50 16 C 08/97 BIT U 50 IM 999 NORTE DE SANTAN 38.1 13173 0.68 6.01 162.16 17 C 12/97 BIT U 8 WV 045 RUM CREEK 49.8 12437 0.71 10.79 169.46 18 C 05/97 BIT S 8 WV 39 SAMPLES 59.6 12484 0.73 11.51 164.32 (1) Coal = 1,000 tons (2) Coal per lb (3) and (4) Percent Oil = 1,000 bbls Oil per gal Gas = 1,000 Mcf Gas per cu ft
EX-99 14 Exhibit j-4
Monthly Cost and Quality of Fuels for Electric Plants FERC 429 Facsimile 01 Company-Plant Code 13433-1626 02 Month & Year of Report 11/96 03 Reporting Company New England Electric 04 Page Number 1 05 Plant Name Salem Harbor 06 Plant Location 24 Fort Ave., Salem, MA 01970 07 Person to be Contacted Fuel Dept. Concerning Data Coal Group Entered on this Form 25 Research Drive, Westboro, MA 01582 08 Telephone Number 508-389-3029 / 508-389-3227 09 Signature of Official Submitting this Report s/ Diane M. Healey 10 Title Fuel Analyst 11 Date Report Completed February 7, 1997 Purchases Coal Mines Only Source Data --------- -------------------------- ------------------------------------------------------- Quality as Received Cont Fuel Coal State County Originating Quantity ------------------- Purch Price Type Expir Type Type Dist Abbr No Location Received BTU Sulfur Ash Cents/MMBT (1) (2) (3) (4) ---- ----- ---- ---- ---- ----- ------ ----------- -------- --- ------ ---- ----------- 12 C 12/96 BIT S 50 IM 999 DIABLO PASO 50.5 12657 0.62 6.25 147.68 (1) Coal = 1,000 tons (2) Coal per lb (3) and (4) Percent Oil = 1,000 bbls Oil per gal Gas = 1,000 Mcf Gas per cu ft
EX-99 15 Exhibit j-5
Monthly Cost and Quality of Fuels for Electric Plants FERC 429 Facsimile 01 Company-Plant Code 13433-1619 02 Month & Year of Report 12/96 03 Reporting Company New England Electric 04 Page Number 1 05 Plant Name Brayton Point 06 Plant Location Brayton Point Road, Somerset, MA 02726 07 Person to be Contacted Fuel Dept. Concerning Data Coal Group Entered on this Form 25 Research Drive, Westboro, MA 01582 08 Telephone Number 508-389-3029 / 508-389-3227 09 Signature of Official Submitting this Report s/ Diane M. Healey 10 Title Fuel Analyst 11 Date Report Completed February 7, 1997 Purchases Coal Mines Only Source Data --------- -------------------------- ------------------------------------------------------- Quality as Received Cont Fuel Coal State County Originating Quantity ------------------- Purch Price Type Expir Type Type Dist Abbr No Location Received BTU Sulfur Ash Cents/MMBT (1) (2) (3) (4) ---- ----- ---- ---- ---- ----- ------ ----------- -------- --- ------ ---- ----------- 12 C 02/97 BIT U 08 WV 059 ASHLAND 39.5 12726 0.65 7.86 173.28 13 C 03/98 BIT S 45 999 999 CERREJON CNTRL 23.2 12090 0.49 5.09 162.38 14 C 04/97 BIT U 8 KY 159 MARTIN COUNTY 40.3 12443 0.72 8.58 175.25 15 C 12/97 BIT U 8 WV 045 RUM CREEK 73.5 12453 0.72 10.49 170.48 16 C 02/97 BIT U 08 KY 195 WHITES CLOUD 3.5 12282 0.63 8.35 150.86 17 S 12/96 BIT U 08 KY 195 WHITES CLOUD 3.8 12282 0.63 8.35 153.07 (1) Coal = 1,000 tons (2) Coal per lb (3) and (4) Percent Oil = 1,000 bbls Oil per gal Gas = 1,000 Mcf Gas per cu ft
EX-99 16 Exhibit j-6
Monthly Cost and Quality of Fuels for Electric Plants FERC 429 Facsimile 01 Company-Plant Code 13433-1626 02 Month & Year of Report 12/96 03 Reporting Company New England Electric 04 Page Number 1 05 Plant Name Salem Harbor 06 Plant Location 24 Fort Ave., Salem, MA 01970 07 Person to be Contacted Fuel Dept. Concerning Data Coal Group Entered on this Form 25 Research Drive, Westboro, MA 01582 08 Telephone Number 508-389-3029 / 508-389-3227 09 Signature of Official Submitting this Report s/ Diane M. Healey 10 Title Fuel Analyst 11 Date Report Completed February 7, 1997 Purchases Coal Mines Only Source Data --------- -------------------------- ------------------------------------------------------- Quality as Received Cont Fuel Coal State County Originating Quantity ------------------- Purch Price Type Expir Type Type Dist Abbr No Location Received BTU Sulfur Ash Cents/MMBT (1) (2) (3) (4) ---- ----- ---- ---- ---- ----- ------ ----------- -------- --- ------ ---- ----------- 12 C 12/96 BIT S 50 IM 999 DIABLO PASO 45.2 12888 0.72 5.71 147.95 13 C 12/97 BIT U 8 WV 045 RUM CREEK 69.3 12466 0.71 10.47 176.55 14 C 05/97 BIT S 8 WV 39 SAMPLES 7.7 12438 0.73 11.76 171.70 15 C 02/97 BIT U 08 KY 195 WHITES CLOUD 2.6 12282 0.63 8.35 155.34 (1) Coal = 1,000 tons (2) Coal per lb (3) and (4) Percent Oil = 1,000 bbls Oil per gal Gas = 1,000 Mcf Gas per cu ft
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