-----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, FepZDTsQgmsMd14cd1Kq6vZbMafv//nzf0ei6ce6Blc9uOwcFvPckLJFUGGR0E2i eo7HYe6sWMEaNS1OsMs7Xw== 0000071297-97-000034.txt : 19970520 0000071297-97-000034.hdr.sgml : 19970520 ACCESSION NUMBER: 0000071297-97-000034 CONFORMED SUBMISSION TYPE: 35-CERT PUBLIC DOCUMENT COUNT: 15 FILED AS OF DATE: 19970515 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: 97608306 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 first quarter of 1997: 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 1/1/97 809,090 46,636,222 7,772,703 8,581,793 Additions & Revisions through 3/31/97 - - - - --------- ----------- ---------- ---------- Balance 809,090 46,636,222 7,772,703 8,581,793 Production 1st Qtr. 1997 (68,326) (4,120,834) (686,806) (755,132) --------- ----------- ---------- ---------- Balance 3/31/97 740,764 42,515,388 7,085,897 7,826,661 --------- ----------- ---------- ----------
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 0 752 Dorchester 0 51 -- ----- 0 803 -- ----- No. of productive wells Samedan 4 1,238* Dorchester 0 69* -- ------ 4 1,307* -- ------ No. of wells drilled 4 2,110 (both exploration and development) -- ----- * Includes depleted/sold wells as follows: Samedan 26 539 Dorchester 0 69 -- ----- 26 608 -- ----- New Program ----------- None. INVESTMENT ---------- Budget Authorized Actual By SEC --------------------------------- ----------------- Since Since Quarter 1/1/97 1/1/95 1995 - 1998 --------- --------- ---------- ----------------- Samedan $749,867 $749,867$19,769,722 $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 Inception Ended Thru 3/31/97 3/31/97 ------- --------- 2. Sales to nonaffiliates (Exhibit c.): Equivalent barrels of fuel produced 755,132 51,531,161 Average price per barrel $ 19.75 $ 14.11 ----------- ------------ Sales revenues $14,912,353 $727,230,914 3. Loss to NEP 6,590,938 354,188,997 4. Flow through of excess deferred 968,340 84,567,446 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 $22,471,631 $1,202,024,923 ----------- -------------- New Program: None. f. Credits applied to New England Power Company (NEP): 1. Disposition of proceeds: Amortization of cost of fuel reserves $20,435,697 $1,099,474,048 Production costs 1,253,834 83,691,282 State taxes 782,100 12,181,926 Savings to NEP - 8,701,242 Royalty to NEP - 1,099,807 Other - 1,265,391 ----------- -------------- Total $22,471,631 $1,206,413,696 ----------- -------------- Net income/(loss)/retained $ - $ (4,388,773) deficit ----------- --------------
-4- f. continued
Quarter Inception Ended Thru 3/31/97 3/31/97 -------- --------- 2. Royalties prepaid to NEP: Beginning balance in account $ 342,312$ - ------------------------ Royalties/savings earned - (9,801,049) Royalties passed on to NEP - 10,143,361 * ------------------------ Ending balance in account $ 342,312$ 342,312 ------------------------ 3. Losses to be passed on to NEP: Beginning balance in account $ 18,766,544$ - ------------------------ Losses accrued 6,590,938 354,188,996 Losses passed on to NEP** (9,334,557) (338,166,071) ------------------------ Ending balance in account $ 16,022,925$ 16,022,925 ------------------------
* 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 December 31, 1996 (net) Subordinated notes 5,253,380 15,743,491 1 - Common stock and premium 250,000 - - ----------- ----------- ------------ Total investment by NEES 5,503,380 15,743,491 - Investment by NEES-during the quarter (net) Subordinated notes 570,956 - - Total investment by NEES through March 31, 1997 (net) Subordinated notes 5,824,336 15,743,491 - Common stock and premium 250,000 - - ----------- ----------- ------------ $ 6,074,336 $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 3/13/97$ 570,956 $ - $ - ended March 31, 1997 Payments of subordinated notes to NEES during quarter ended March 31, 1997 $ - $ - $ - ------------ ------- ------- Net change in investment $ 570,956 $ - $ - ------------ ------- ------- _______________ (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 March 31, 1997, (unaudited, subject to adjustment) Exhibit h-2 Statement of Income and Retained Deficit of NEEI for the quarter ended March 31, 1997 (unaudited, subject to adjustment) Exhibit h-3 Statement of Cash Flows of NEEI for the quarter ended March 31, 1997 (unaudited, subject to adjustment) Exhibit h-4 Computation of Bank Interest for the quarter ended March 31, 1997 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) 1st Quarter Quantity of fuel (equiv. bbl) 981,581.76 Average net price (per equiv. bbl) $ 6.38 ------------- Cost to NEEI $ 6,261,352 Loss from NEEI fuel exploration activities 9,334,557 ------------- Cost to NEP 15,595,909 Adjustments, inspection charges, etc. - ------------- ----------- Total $15,595,909 =========== k. Use of Proceeds from Sales of NEEI New Program Production: None. -7- Sale of NEEI Wells ------------------ Old Program - ----------- During the period from January 1, 1997 through March 31, 1997, 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 ------------ ------------------ ------------- --------------- County Line Canadian County, OK Bohlman Well #1 12/31/96* 0 Banner Canadian County, OK Bonebrake Well #1 12/31/96* 0 Donna J Well #1-19 12/31/96* 0 Donna J Well #1 12/31/96* 0 Everet Unit 12/31/96* 0 Harman Well #1-4 12/31/96* 0 Lorenzen well #1-18 12/31/96* 0 Mason Wells 12/31/96* 0 Meschberger Well #21-1 12/31/96* 0 Milam Wells #1-18,2-18,3-18,4-18 12/31/96* 0 Reding Well #20-1 12/31/96* 0 Warr Well #1 12/31/96* 0 Criner McClain County, OK Donal Well #1-19 12/31/96* 0 Richland Canadian County, OK Maier Well #1 12/31/96* 0 Clinton Custer County, OK Haggard Well #2-11 12/31/96* 0 Provident City Lavaca County, TX Bing Well #1 11/01/96* 1,658 Cullen Estate Well #1 11/01/96* 416 Cullen Estate Well #2A 11/01/96* 89 Simpson Well #1 11/01/96* 8,523 Mitchell E Well #5 11/01/96* 2,251 Mitchell E Well #1 11/01/96* 0 South Carlsbad Eddy County, NM Carlsbad State Well #1 11/01/96* 0 East Bitter Lake Chaves County, NM Yates 36 State Well #1 11/01/96* 0 Continental Freestone County, TX M. Levels Well #1 11/01/96* 0 Beaverton Lamar County, AL J.F. Holley Well #1 11/01/96* 0 Lost Bridge Dunn County, ND Lost Bridge State Well #1-16 01/01/97* 979 ------ 13,916 ====== * Reported by Samedan in the first quarter of 1996.
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 -8- total 13,916 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 1995. NEEI's Old Program loss of $18,766,544, incurred in 1996, is being passed on to NEP in 1997. 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: May 15, 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 Filed herewith prospect (Old Program) c Production and net revenue Filed herewith (Old Program) h-1 Balance Sheet at March 31, 1997 Filed herewith (Unaudited, Subject to Adjustment) h-2 Statement of Income and Retained Filed herewith Deficit for the Quarter Ended March 31, 1997 (Unaudited, Subject to Adjustment) h-3 Statement of Cash Flows for the Filed herewith Quarter Ended March 31, 1997 (Unaudited, Subject to Adjustment) h-4 Computation of Bank Interest for the Filed herewith Quarter Ended March 31, 1997 i Fuel Purchased for NEP for the Filed herewith Quarter Ended March 31, 1997 j-1 Monthly Report of Cost and Quality Filed herewith of Fuels for Electric Plants January 1997 (Brayton Point) j-2 Monthly Report of Cost and Quality Filed herewith of Fuels for Electric Plants January 1997 (Salem Harbor) j-3 Monthly Report of Cost and Quality Filed herewith of Fuels for Electric Plants February 1997 (Brayton Point) j-4 Monthly Report of Cost and Quality Filed herewith of Fuels for Electric Plants February 1997 (Salem Harbor) j-5 Monthly Report of Cost and Quality Filed herewith of Fuels for Electric Plants March 1997 (Brayton Point) j-6 Monthly Report of Cost and Quality Filed herewith of Fuels for Electric Plants March 1997 (Salem Harbor) EX-99 3 Exhibit a NEW ENGLAND ENERGY INCORPORATED INVESTMENT IN PARTNERSHIPS BY PROSPECT - OLD PROGRAM MARCH 31, 1997
ESTIMATED TOTAL COST --------------------------------------------------- Samedan Prospect Name Exploration Development* Total - ------- ------------- ----------- ------------ --------- 62583 Brazo 50-54/37&8/65-7 17,348,177.51 48,143,054.29 65,491,231.80 62436 Eugene Island 247/8/9 5,215,869.84 23,645,517.31 28,861,387.15 61402 Northeast Chevron 2,564,516.91 23,016,961.78 25,581,478.69 62493 Eugene Island Blk 208 1,584,198.43 18,159,029.40 19,743,227.83 62479 Main Pass 90/93+4/102+5 3,857,539.09 15,417,878.90 19,275,417.99 62559 West Delta 18/33 8,563,719.40 10,694,253.62 19,257,973.02 62367 Hl 21/22/22L/34/50/51 3,990,233.94 13,469,002.75 17,459,236.69 61998 High Island A365/A376 0.00 11,799,984.33 11,799,984.33 62289 Main Pass 107/108 1,445,886.28 9,911,510.84 11,357,397.12 62468 Vermilion 114/109 1,323,006.83 6,120,333.21 7,443,340.04 61898 Eugene Island B 24&27 2,928,747.83 4,035,162.95 6,963,910.78 62331 West Delta 27/28/48 2,746,928.39 3,656,772.35 6,403,700.74 62282 West Cameron b131/132 0.00 5,638,250.20 5,638,250.20 21494 Banner 273,777.89 5,267,399.98 5,541,177.87 62554 Eugene Island 28 1,739,766.26 3,751,800.95 5,491,567.21 61501 Vermilion 241/261 (EC) 2,221,789.49 3,044,340.46 5,266,129.95 62366 Brazos 400.12.13.435 1,778,642.70 3,366,684.93 5,145,327.63 62365 Matagorda Is B 586/87 2,208,706.08 2,771,585.18 4,980,291.26 61410 High Island B 270/281 562,646.27 3,545,886.54 4,108,532.81 53330 Derrick Draw/ PDR RIV 2,389,085.97 1,251,048.16 3,640,134.13 42017 Kildare Smackover T 975,025.30 2,620,132.18 3,595,157.48 62558 South Timbalier 197 2,307,523.54 490,464.62 2,797,988.16 51673 Williston 0.00 2,634,434.80 2,634,434.80 62377 Vermilion Block 76 945,194.48 1,651,896.37 2,597,090.85 62543 West Cameron 433/457 333,421.78 2,224,373.03 2,557,794.81 62284 Vermilion Blk 167 924,503.21 1,516,755.51 2,441,258.72 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 404,491.11 1,713,576.33 2,118,067.44 42004 Provident City/Speaks 0.00 1,827,014.40 1,827,014.40 Other 14,540,559.12 21,088,460.29 35,629,019.41 -------------- -------------- -------------- Total Productive Samedan 85,589,799.47 254,893,888.33 340,483,687.80 -------------- -------------- -------------- Dry Holes Samedan (including depleted wells) 408,218,401.81 408,218,401.81 Work in Process Samedan 566,121.93 566,121.93 Dorchester (terminated investment) 67,401,440.17 67,401,440.17 -------------- -------------- -------------- Grand Total 561,775,763.38 254,893,888.33 816,669,651.71 ============== ============== ============== *Includes Lease Acquisition
EX-99 4 Exhibit c NEW ENGLAND ENERGY INCORPORATED PRODUCTION AND NET REVENUE - OLD PROGRAM FOR THE QUARTER ENDED MARCH 31, 1997
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 3,853.10 1,510,946.00 92,272.475,377,249.215,469,521.68 62367 Hl 21/22/22L/34/50/51 1,257.30 794,531.00 30,387.042,434,504.312,464,891.35 62479 Main Pass 90/93+4/102+5 0.00 526,926.00 0.001,668,651.871,668,651.87 62289 Main Pass 107/108 3,219.10 215,425.00 78,593.76 714,814.47 793,408.23 62365 Matagorda Is B 586/87 66.77 240,853.00 1,549.68 693,355.40 694,905.08 61998 High Island A365/A376 7,791.41 121,121.00 184,777.95 382,195.73 566,973.68 61898 Eugene Island B 24&27 2,783.56 140,182.00 66,713.20 463,189.56 529,902.76 62288 West Cameron Blk 290 437.05 109,256.00 9,680.77 303,232.44 312,913.21 62366 Brazos 400.12.13.435 203.03 76,714.00 4,666.91 257,493.04 262,159.95 62554 Eugene Island 28 2,249.53 62,683.00 54,041.05 189,127.01 243,168.06 62582 Brazos 476/491/449 93.86 72,169.00 2,205.39 235,836.56 238,041.95 53330 Derrick Draw/PDR RIV 10,753.38 1,257.00 226,316.64 812.64 227,129.28 62331 West Delta 27/28/48 7,817.77 5,701.00 180,934.85 18,986.11 199,920.65 61410 High Island B270/281 456.52 60,979.00 11,157.80 175,504.58 186,662.38 42017 Kildare Smackover T 6,708.23 10,836.00 151,715.60 17,965.98 169,681.58 62493 Eugene Island Blk 208 5,547.20 5,524.00 127,911.61 17,512.14 145,423.75 42487 Orcones 1,177.93 33,970.00 25,673.20 85,988.35 111,661.55 Other 13,910.77 131,761.00 318,647.66 308,688.38 627,336.04 --------- -------------- -------------- ------------ ------------ Totals 68,326.51 4,120,834.00 1,567,245.58 13,345,107.78 14,912,353.36 ========= ============== ============== ============ ============
EX-99 5 Exhibit h-1 NEW ENGLAND ENERGY INCORPORATED Balance Sheet March 31, 1997 (Unaudited, Subject to Adjustment)
ASSETS - ------ Old Program New Program Combined ----------- ----------- -------- Current assets: Cash, including temporary cash investments of $9,200,000 with affiliated companies $ 9,329,418 $ (110,313) $ 9,219,105 Accounts receivable: Affiliated companies: - accrued loss to be passed on to affiliate 16,022,925 - 16,022,925 - from sales of oil 5,216,018 - 5,216,018 - tax benefits - 176,154 176,154 - other 81,310 - 81,310 Prepaid expenses 342,312 - 342,312 -------------- ------------ -------------- Total current assets 30,991,983 65,841 31,057,824 -------------- ------------ -------------- Property at cost: Cost of fuel reserves: Exploration and development costs: Samedan 748,702,089 - 748,702,089 Dorchester 67,401,440 - 67,401,440 Cost of capital 452,260,260 - 452,260,260 Other 37,899,992 - 37,899,992 -------------- ------------ -------------- 1,306,263,781 - 1,306,263,781 Less-accumulated amortization (1,099,474,048) -(1,099,474,048) -------------- ------------ -------------- Net cost of fuel reserves 206,789,733 - 206,789,733 Work in process - Samedan 566,122 - 566,122 -------------- ------------ -------------- Total property 207,355,855 - 207,355,855 -------------- ------------ -------------- $ 238,347,838 $ 65,841 $ 238,413,679 ============== ============ ============== LIABILITIES AND PARENT COMPANY'S INVESTMENT - ------------------------------------------- Current liabilities: Accrued exploration and development costs $ 18,399,633 $ - $ 18,399,633* Accounts payable 3,077,197 57,260 3,134,457 Accrued interest 921,739 - 921,739 Accrued taxes payable 11,928,400 - 11,928,400 -------------- ------------ -------------- Total current liabilities 34,326,969 57,260 34,384,229 -------------- ------------ -------------- Deferred income taxes 64,897,466 (42,800) 64,854,666 -------------- ------------ -------------- Deferred credit 2,420,608 - 2,420,608 -------------- ------------ -------------- Notes payable to banks under credit agreement 140,000,000 - 140,000,000 -------------- ------------ -------------- Parent company's investment: Subordinated notes payable to parent 5,824,33615,743,491 21,567,827 Common stock, par value $1 per share 2,500 - 2,500 Paid-in capital 247,500 - 247,500 Retained deficit (9,371,541) (15,692,110) (25,063,651) -------------- ------------ -------------- Total parent company's investment (3,297,205) 51,381 (3,245,824) -------------- ------------ -------------- $ 238,347,838 $ 65,841 $ 238,413,679 ============== ============ ============== *Accrued exploration and development costs: Total (All Samedan) ------------- Exploration $11,758,094 Development 7,261,181 Work in process (1,180,462) Advance 560,820 ----------- $18,399,633 ===========
EX-99 6 Exhibit h-2 NEW ENGLAND ENERGY INCORPORATED Statements of Income and Retained Deficit For the Quarter Ended March 31, 1997 (Unaudited, Subject to Adjustment)
Old Program New Program Combined ----------- ----------- -------- Operating revenue: Sales of fuel to an affiliate $ 15,595,909$ -$ 15,595,909 Loss passed on to an affiliate (9,334,557) - (9,334,557) Accrued loss to be passed on to an affiliate6,590,938 - 6,590,938 Sales to nonaffiliates: Oil 1,567,245 198 1,567,443 Gas 13,345,108 6,448 13,351,556 ------------------------------------ Total operating revenue 27,764,643 6,646 27,771,289 ------------------------------------ Operating expenses: Purchases of fuel for an affiliate 6,261,352 - 6,261,352 Amortization of cost of fuel reserves 20,435,697 - 20,435,697 Production costs 1,253,834 (16,530) 1,237,304 ------------------------------------ Total operating expenses 27,950,883 (16,530) 27,934,353 ------------------------------------ Operating income/(loss) (186,240) 23,176 (163,064) Other income/(expense): Interest income - - - Interest expense (573,212) - (573,212) Other expense (20,672) - (20,672) State taxes (760,500) - (760,500) ------------------------------------ Operating and other income/(loss) (1,540,624) 23,176 (1,517,448) ------------------------------------ Federal income taxes: Current federal income taxes 9,793,960 8,100 9,802,060 Deferred federal income taxes (10,962,500) - (10,962,500) ------------------------------------ Net federal income taxes (1,168,540) 8,100 (1,160,440) ------------------------------------ Net income (372,084) 15,076 (357,008) Retained deficit at beginning of period (8,999,457)(15,707,186)(24,706,643) ------------------------------------ Retained deficit at end of period $ (9,371,541) $(15,692,110) $(25,063,651) ============ ============ ============
EX-99 7 Exhibit h-3 NEW ENGLAND ENERGY INCORPORATED Statements of Cash Flows For the Quarter Ended March 31, 1997 (Unaudited, Subject to Adjustment)
Old Program New Program Combined ----------- ----------- -------- Operating Activities: Net income $ (372,084) $ 15,076$ (357,008) Adjustments to reconcile net income to net cash provided by operating activities: Amortization of cost of fuel reserves 20,435,697 - 20,435,697 Loss passed on to an affiliate 9,334,557 - 9,334,557 Accrued loss to be passed on to an affiliate (6,590,938) -(6,590,938) Deferred income taxes (7,698,902) - (7,698,902) (Increase)/decrease in accounts receivable (excluding loss to be passed on to affiliate) (5,236,972) 8,100 (5,228,872) Increase/(decrease) in accrued exploration and development costs 1,290,946 - 1,290,946 Increase/(decrease) in accounts payable 1,180,066 (1,332) 1,178,734 Increase/(decrease) in accrued interest payable (19,650) -(19,650) Increase/(decrease) in accrued taxes payable 8,212,600 - 8,212,600 ------------ --------------------- Net cash provided by operating activities $ 20,535,320 $ 21,844 $ 20,557,164 ------------ --------------------- Investing Activities: Investment in property - Samedan: Exploration (also includes dry holes, depleted wells and work in process) $ (443,459)$ -$ (443,459) Development (also reflects transfer of depleted wells) (306,407) - (306,407) Capital costs (1,611,743) - (1,611,743) Other (746,800) - (746,800) ------------ --------------------- Net cash used in investing activities $ (3,108,409)$ -$ (3,108,409) ------------ --------------------- Financing Activities: Subordinated notes payable to parent-issues $ 570,956 $ - $ 570,956 Subordinated notes payable to parent-retirements - - - Changes in notes payable to bank under credit agreement (9,000,000) - (9,000,000) ------------ --------------------- Net cash used in financing activities $ (8,429,044)$ - $(8,429,044) ------------ --------------------- Net increase/(decrease) in cash and cash equivalents $ 8,997,867 $ 21,844 $ 9,019,711 Cash and cash equivalents at beginning of period 331,551 (132,157) 199,394 ------------ --------------------- Cash and cash equivalents at end of period $ 9,329,418$ (110,313) $ 9,219,105 ------------ ---------------------
EX-99 8 Exhibit h-4 NEW ENGLAND ENERGY INCORPORATED Computation of Bank Interest Quarter Ended March 31, 1997 ------------------------------- 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 $ 253,102.77 37,000,000 09/13/96 03/13/97 6.1725 450,421.04 6,000,000 10/21/96 01/21/97 5.7625 19,208.33 30,000,000 10/21/96 01/21/97 5.7625 96,041.67 11,000,000 11/13/96 01/21/97 5.7350 35,047.22 15,000,000 12/13/96 01/13/97 5.8600 29,300.00 10,000,000 12/30/96 01/30/97 5.9225 47,709.03 16,000,000 01/13/97 02/13/97 5.7350 79,015.56 47,000,000 01/21/97 04/21/97 5.7975 529,827.08 10,000,000 01/30/97 02/28/97 5.6725 45,695.14 23,000,000 02/13/97 03/13/97 5.6725 101,474.73 30,000,000 02/13/97 03/13/97 5.7975 227,068.75 10,000,000 02/28/97 03/27/97 5.6100 42,075.00 16,000,000 03/13/97 06/13/97 5.7975 48,956.67 37,000,000 03/13/97 06/13/97 5.7975 113,212.29 10,000,000 03/27/97 04/28/97 5.9225 8,225.69 -------------- 2,126,380.97 Interest Rate Swap 15,857.64 Fees (Primarily facility) 33,138.47 -------------- Total Old Program $2,175,377.08 --------------
EX-99 9 Exhibit i NEW ENGLAND ENERGY INCORPORATED Fuel Purchased for NEP for the Quarter Ended March 31, 1997 -----------------------------------------
Exploration - ----------- Date purchased (delivered) Jan. 13, 1997 Jan. 25, 1997 Jan. 29, 1997 ------------- ------------- ------------- Quantity of fuel (eq. bbl) 167,371.29 4,686.29 161,193.35 Average net price (per eq. bbl) $ 6.57$ 6.57$ 6.12 ---------- --- ---------- --- -------------- Cost to NEEI $1,099,288.15$ 30,779.39 $ 986,331.17 Loss from NEEI fuel exploration activities 1,591,652.24 44,565.29 1,532,901.83 ------------- ------------- ------------- Cost to NEP $2,690,940.39$ 75,344.68$2,519,233.00 ---------- -- --- ------------- ------------- Date purchased (delivered) Jan. 31, 1997 Feb. 10, 1997 Mar.11,1997 ------------- ------------- ----------- Quantity of fuel (eq. bbl) 164,703.80 156,317.74 162,880.08 Average net price (per eq. bbl) $ 6.53 $ 6.39 $ 6.15 ------------- ---------- --- ------------- Cost to NEEI $1,076,171.43 $ 998,991.80 1,001,000.88 ------------- ---------- --- ------------- Loss from NEEI fuel exploration activities 1,566,285.15 1,486,536.221,548,942.12 ------------- ---------- --- ------------- Cost to NEP $2,642,456.58$2,485,528.02 $2,549,943.00 ---------- --- ---------- --- ------------- Date purchased (delivered) Mar. 19,1997 ------------ Quantity of fuel (eq. bbl) 164,429.20 Average net price (per eq. bbl) $ 6.50 -------------- Cost to NEEI $ 1,068,789.80 -------------- Loss from NEEI fuel exploration activities $ 1,563,673.80 ------------ Cost to NEP $ 2,632,463.60 -------------
EX-99 10 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 1-97 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 Diane M. Healy 10 Title Analyst 11 Date Report Completed March 13,1997 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 44.6 12985 0.69 8.45 172.63 13 C 12/97 BIT S 45 IMP 999 EL CERREJON 40.9 12100 0.57 5.26 209.08 14 S 04/96 BIT U 08 WV 15 FOLA-CR 10.0 12633 0.65 10.79 181.12 15 C 12/96 BIT S 08 WV 045 HOBET 8.6 12292 0.73 11.33 171.70 16 C 06/98 BIT S 08 WV 045 HOBET 61.9 12236 0.74 10.87 168.98 17 C 04/97 BIT U 08 KY 159 MARTIN COUNTY 39.1 12467 0.68 8.41 173.03 18 C 12/97 BIT U 08 WV 045 RUM CREEK 40.4 12545 0.70 9.63 169.95 19 S 04/97 BIT U 08 WV 059 SIDNEY COAL 37.3 12429 0.68 8.62 175.88 COAL PRICES REPORTED EXCLUDE $3,169,119.36 PAID TO NEEI FOR COAL DELIVERED TO BRAYTON POINT AND SALEM HARBOR. (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 11 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 1/97 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 Diane M. Healy 10 Title Analyst 11 Date Report Completed March 13, 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 3/98 BIT S 45 999 999 CNTRL CERREJON 45.5 12198 0.73 7.37 162.25 (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-3
Monthly Cost and Quality of Fuels for Electric Plants FERC 429 Facsimile 01 Company-Plant Code 13433-1619 02 Month & Year of Report 2/97 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 Diane M. Healy 10 Title Analyst 11 Date Report Completed April 14, 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 07/97 BIT U 08 WV 059 ASHLAND 38.1 12842 0.67 9.04 176.23 13 C 12/96 BIT U 8 KY 159 MARTIN COUNTY 2.3 12467 0.68 8.41 177.52 14 C 08/97 BIT U 50 IM 999 NORTE DE SANTAN 27.8 12705 0.75 8.48 162.19 15 C 03/98 BIT U 8 KY 159 PONTIKI 80.1 12815 0.68 6.67 176.12 16 C 05/97 BIT S 8 WV 39 SAMPLES 39.4 12477 0.70 11.13 170.61 Coal prices reported exclude $3,052,821.37 paid to NEEI for coal delivered to Brayton Point and Salem Harbor. (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-4
Monthly Cost and Quality of Fuels for Electric Plants FERC 429 Facsimile 01 Company-Plant Code 13433-1626 02 Month & Year of Report 02/97 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 Diane M. Healy 10 Title Analyst 11 Date Report Completed April 14, 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 8 WV 5 HAMPTON3 30.4 12723 0.68 9.63 179.42 13 C 06/98 BIT S 8 WV 045 HOBET 10.2 12246 0.77 11.69 173.20 14 C 12/97 BIT U 8 WV 045 RUM CREEK 40.3 12376 0.69 11.57 175.29 (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-5
Monthly Cost and Quality of Fuels for Electric Plants FERC 429 Facsimile 01 Company-Plant Code 13433-1619 02 Month & Year of Report 03/97 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 Diane M. Healy 10 Title Analyst 11 Date Report Completed May 13,1997 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 04/96 BIT U 45 IM 999 CERREJON 42.5 12071 0.65 5.63 161.91 13 C 03/98 BIT S 45 999 999 CERREJON CNTRL 28.7 11870 0.70 7.75 171.62 14 C 03/98 BIT U 8 KY 159 PONTIKI 39.9 12814 0.67 6.56 180.06 15 C 12/97 BIT U 8 WV 045 RUM CREEK 40.5 12363 0.69 12.36 169.10 16 C 04/97 BIT S 8 WV 39 SAMPLES 13.5 12554 0.70 11.68 171.06 17 C 05/97 BIT S 8 WV 39 SAMPLES 26.9 12657 0.71 11.02 167.04 18 C 04/97 BIT U 8 WV 059 SIDNEY COAL 40.1 12414 0.77 9.24 176.02 Coal prices reported exclude $3,112,615.92 paid to NEEI for coal delivered to Brayton Point and Salem Harbor. (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-6
Monthly Cost and Quality of Fuels for Electric Plants FERC 429 Facsimile 01 Company-Plant Code 13433-1626 02 Month & Year of Report 03/97 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 Diane M. Healy 10 Title Analyst 11 Date Report Completed May 13, 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 12/98 BIT S 45 IMP 999 EL CERREJON 40.1 12033 0.70 5.92 193.48 13 C 04/97 BIT U 8 KY 159 MARTIN COUNTY 39.5 12540 0.73 9.29 179.72 (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
-----END PRIVACY-ENHANCED MESSAGE-----